ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
Opinion

Chinese deflation? A risk for 2019

Inflation concerns give way to worries about Japanese-style price stagnation

| China
Is China now heading for Japan-style deflation?   © Reuters

What a difference a year makes when you are trading Chinese bonds.

Twelve months ago, dealers in China's $2 trillion government debt market braced for a wipeout. Ten-year yields surged above 4% amid worries overly loose monetary policy might fan inflation. That, in turn, fueled fears of a wave of corporate defaults. Now, the opposite risk may be at play: deflation.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more