Leo Liu, manager of the sprawling Wankelai store in the Chinese capital of Beijing, spoke into a microphone, announcing progressively steeper discounts in a flash sale, until he finally sold a cotton jacket and a woman's undershirt.

Asian equities were mixed but mostly lower overnight as the Philippines and Japan outperformed while Thailand and Hong Kong underperformed.

China is experiencing deflation, with consumer prices dropping by 0.7% and producer prices decreasing by 2.2%. The surplus industrial capacity and red

Analysts said this indicated Beijing's reluctance to take a sharper turn in changing the growth model away from investment and manufacturing exports.

European stock markets were trading lower Monday on fears over deflation in China and a recession in the U.S. London's FTSE 100 index was down 0.6%, Germany's DAX declined 0.8%, France's CAC decreased 0.

With China's deflationary pressures mounting, retailers like Wankelai store resort to flash sales and deep discounts to attract budget-conscious consumers. As price wars grow, this trend deepens deflation,

China’s reliance on trade for growth faces fresh challenges as the United States and many other countries have raised tariffs on Chinese goods.

It revolves around 10 key tasks such as boosting consumption, attracting investment, mitigating financial risks

China's leaders are overseeing a spell of deflation, or falling prices, that contrasts with inflationary pressures prevailing elsewhere in the world.

A clearer read on the inflation trend will emerge in March, as investors look for signs that the government’s stimulus is translating into stronger demand.