USD/CNY Will Be at 6.5 by End of Year: BNP Paribas’s Sun

The video discusses the anticipated inclusion of Chinese assets in the Footsie Russell index, highlighting its potential impact on foreign investments and the CNY. It also examines the systemic risk posed by Evergrande in the Asia credit markets, noting the effects of COVID-19 on equity and credit markets. The discussion shifts to the renminbi trade, forecasting its appreciation and the economic growth divergence between China and other regions. The video concludes with an overview of China's upcoming five-year plan, focusing on domestic growth and market openness.

What is the expected impact of the Footsie Russell index inclusion on the Chinese bond market?

• Decrease in foreign investments

• Increase in foreign investments

• No change in foreign investments

• Decrease in bond market value

How does the Evergrande situation relate to systemic risk in the market?

• It is expected to boost market confidence

• It is seen as a potential red flag

• It is considered a minor issue

• It has no impact on systemic risk

What is the current forecast for the renminbi exchange rate by the end of the year?

• 6.8

• 7.5

• 7.1

• 6.5

What is the interest rate gap between Chinese government bonds and U.S. Treasury bonds?

• 300 basis points

• 50 basis points

• 240 basis points

• 100 basis points

What is the expected GDP growth for China in Q3 and Q4?

• 4.5% and 5.0%

• 3.5% and 4.0%

• 5.5% and 5.8%

• 6.0% and 6.5%

What is the forecasted GDP decline for the UK this year?

• -5.6%

• -9.7%

• -4.2%

• -10.0%

What is a key focus of China's upcoming five-year plan?

• Stimulating domestic growth

• Increasing foreign dependency

• Reducing domestic demand

• Decreasing technology access