Fears are rising that China's economy is at Risk of deflation after underwhelming economic data revealed stagnant growth. China's GDP for the second quarter grew 6.3% from a year ago, missing market expectations. China's producer prices fell 5.4% in June from a year earlier, the ninth consecutive decline. Consumer price inflation was flat in June, with a 7.2% drop in pork prices. The People's Bank of China denies the risk of deflation, citing economic recovery and growth in money supply. Wall Street banks have downgraded their growth forecasts for China.

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