China’s Slowdown Momentum Is Not Yet Over, Says HSBC’s Wang

The transcript discusses the ongoing economic slowdown, highlighting the lack of stabilization despite some positive PMI data. It explores the challenges in the manufacturing sector, the impact of trade talks, and the uncertainty affecting businesses. The discussion also covers policy challenges, potential labor market impacts, deflation pressures, and their effect on industrial profits. Retail sales, consumer sentiment, and unemployment rates are analyzed, with a focus on the role of auto sales and consumer behavior.

What is the primary concern for policymakers in the current economic slowdown?

• Increasing inflation rates

• Sharp slowdown in manufacturing

• Stable labor market

• Rising foreign investments

What is identified as the biggest driver of the manufacturing slowdown?

• Strong fiscal policy

• Uncertainty in the business environment

• High tariffs

• Increased consumer spending

How does the phase one trade deal impact the current economic situation?

• It completely resolves the uncertainty

• It reduces consumer spending

• It has a limited impact on uncertainty

• It increases manufacturing output

What is a notable factor affecting retail sales according to the transcript?

• Decreasing smartphone sales

• Rising unemployment

• Strong auto sales

• High consumer confidence

What structural change in the consumption basket is mentioned?

• Decline in 5G smartphone purchases

• Postponement of non-essential purchases

• Increased spending on luxury goods

• Shift towards essential goods