Weak demand at home
The Hang Seng China Enterprises Index advanced 0.7 per cent as of the mid-day break on July 10, driven by tech stocks as investors look for normalization in the nation’s regulatory environment. The government has been trying to put a floor under pork price declines, saying last week that it would buy more pork for state reserves to boost demand.
The scope for policy to stem the threat of deflation is more limited this time around, in part given concerns about debt risks.
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