China's Consumer Prices Fall at Fastest Pace in 3 Years, Stoking Growth Worries
• China's consumer price index fell 0.5% year-on-year in November, the fastest pace of deflation in 3 years • Producer price inflation remained negative for the 14th straight month, underscoring weak business activity • The data spurred a sell-off in Chinese stocks, with the Shanghai Composite sinking over 1% to near a 5-year low • China faces consistent economic headwinds like a property downturn and poor export demand, hampering recovery • While authorities have pledged more stimulus, investors want targeted fiscal support like infrastructure spending, not just PBOC liquidity injections