China's Deflation Returns as Consumer Prices Decline, Raising Concerns for Fragile Economic Recovery

China's consumer prices fell by 0.2% in October, indicating an ongoing deflationary environment and sluggish domestic demand. Producer prices also declined, remaining in negative territory for the 13th consecutive month. The country's property sector, which makes up about 30% of its economy, is facing an ongoing debt crisis, further impacting consumer confidence. Despite targeted policy support, growth has remained sluggish. Investors are now closely monitoring the Singles Day shopping festival to assess the strength of Chinese consumption, although expectations for this year's event are muted.