Chinese equities to retrace

Greetings this week from Shanghai and Xi’an,

there is no inflation in China,

food and services are cheap,

but that decline (and current ebb) in Chinese inflation and bond yields have provided the Shanghai Composite with a boost.

Now, I expect the Chinese inflation rate to makes it way back to the 1.8% mark (from its current 0.2%) and in turn, we should see the broader Chinese equity indices take a breather.

November 12, 2025

rob@karriasset.com.au