Deutsche Bank Sees China's Continued Sequential Recovery

The video discusses the impact of currency levels on policymakers, focusing on the depreciation against the dollar and the trade-weighted basket. It highlights China's COVID strategy and its economic implications, emphasizing the need for policy changes. The fourth quarter is expected to see economic recovery driven by domestic demand and exports. The bond market faces challenges due to currency impacts, with inflows and outflows affected by interest rate gaps. Fiscal policy is crucial for economic support, with local governments facing financial strain due to COVID-related spending.

What is the Central Bank's approach to managing currency depreciation?

• Increasing interest rates

• Implementing macroprudential measures

• Reducing foreign exchange reserves

• Encouraging foreign investments

What change in strategy is suggested for China to improve economic conditions?

• Relaxing the zero COVID strategy

• Enhancing digital infrastructure

• Increasing export tariffs

• Reducing property taxes

What is expected to drive growth recovery in the fourth quarter?

• Higher export tariffs

• Stricter COVID restrictions

• Domestic demand and policy easing

• Increased foreign investments

How is the bond market expected to behave before the year ends?

• High volatility

• Stable with no changes

• Significant inflows

• Continued outflows

What role does fiscal easing play in China's economic strategy?

• It is critical for growth recovery

• It is only used for emergency situations

• It is less important than monetary easing

• It focuses solely on reducing taxes

What is the expected fiscal deficit for the full year?

• 6%

• 8%

• 5%

• 7.5%

What is one of the fiscal measures announced to support the economy?

• Reduction in corporate taxes

• Subsidies for EV car purchases

• Expansion of healthcare facilities

• Increase in import duties