Top-Ranked Researchers Flag China Bond Risks as Inflation Surges
- Investors should note rising chances of stagflation: Haitong
- Stimulus could reverse economic downturn, JZ Securities says
Pedestrians walk past the People's Bank of China in Beijing.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
China’s accelerating consumer prices and a slowing economy are raising the chances of stagflation and increasing the risk to bonds, according to the nation’s top-ranked fixed-income analysts.
A Haitong Securities Co. research team, graded the best by China’s New Fortune magazine in 2015, issued the warning after data Thursday showed consumer inflation accelerated 2.3 percent in February, the fastest pace in 20 months. The producer-price index extended a record run of declines to 48 months.