BEIJING (XFN-ASIA) - Deutsche Bank expects China to see its worst episode of deflation in 10 years in 2009, with CPI inflation likely to contract by more than 1 pct in February and PPI to decline to minus 7 pct by the third quarter.
Ma Jun, the bank's chief economist for Greater China, said at a media briefing here that sources of deflation will be mainly from price declines in the agriculture, raw material and property sectors.
Three major losers in the market could be the property, commodity and banking industries as a result, while three major beneficiaries should be the food & beverage, power and oil refining sectors, he said.
