The data released by the National Bureau of Statistics that CPI (Consumer Price Index) increased by 0.2% and PPI (Producer Price Index) decreased by 2.5% in November will have an impact on the A-share market.4. ** Adjustment of industry structure * *: The decline of PPI may lead to the inclination of resource allocation to more competitive industries and fields, thus affecting the adjustment of industry structure in the A-share market.
6. ** Policy orientation * *: The government may solve the problems reflected by CPI and PPI data, such as easing the pressure of upstream industries by adjusting policies such as taxes and subsidies, or stimulating consumption to enhance the profitability of downstream industries. These policy adjustments will also have a certain impact on the A-share market.
The data released by the National Bureau of Statistics that CPI (Consumer Price Index) increased by 0.2% and PPI (Producer Price Index) decreased by 2.5% in November will have the following effects on the A-share market:2. ** Monetary policy space * *: Due to the low increase of CPI, it provides greater operating space for the People's Bank of China to implement a prudent monetary policy. If the economy needs to be stimulated, the central bank may release liquidity through interest rate cuts and RRR cuts, which is a positive signal for the A-share market.6. ** Policy orientation * *: The government may solve the problems reflected by CPI and PPI data, such as easing the pressure of upstream industries by adjusting policies such as taxes and subsidies, or stimulating consumption to enhance the profitability of downstream industries. These policy adjustments will also have a certain impact on the A-share market.