China’s price wars plunge stocks as tepid demand haunts corporate earnings

The seemingly relentless decline in prices of Chinese goods amid tepid consumer demand is denting expectations that corporate earnings can revive the flagging stock market. From electric vehicles to fast food, companies are engaging in a battle of promotions aimed at luring customers who are spooked by dim job prospects and have seen a persistent property slump hurt wealth creation. Consumer prices fell for a third-straight month in December, the longest streak since 2009, deepening concerns about companies' profits and share prices. "That's all symbolic of a very weak consumption environment that includes lack of consumer confidence and weak income…