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China: CPI Lower Than Expected, Market Still Not Happy

You should mention that much of sell-off that occurred on the sse on the day that your mentioning was due to the selling off of commidity producers in anticipation of future outlook. Thus, a dampening of commidities, and continued deteriotion of them, should help out the PPI in the foreseable future and close the gap between CPI and PPI. Thus, the government can and does have room to orchestrate more economic stimulus in the coming months. Given the above, and the encouraging CPI numbers, a market that is down 60% should have some legs going forward.