Expect More Fiscal Measures From China, Says BNP Paribas’s Lai

The transcript discusses the surprising speed of China's economic recovery post-COVID-19, highlighting a V-shaped recovery. It contrasts China's conservative policy response with Western approaches, emphasizing reliance on bank lending and macroeconomic measures. The banking industry's ability to handle bad loans and the bond market's liquidity are explored. The speaker reaffirms commitment to expanding in China, noting challenges in finding talent.

What was the initial expectation for China's economic recovery shape?

• V-shaped

• W-shaped

• U-shaped

• L-shaped

What is the expected shape of China's economic recovery according to the transcript?

• W-shaped

• Nike V-shaped

• L-shaped

• U-shaped

How does China's policy response to the virus differ from Western countries?

• China focuses on reducing exports

• China increases taxes

• China uses direct cash transfers

• China relies on bank lending and macro measures

What role does the PBOC play in China's economic recovery?

• Increasing taxes

• Dropping interest rates to pump liquidity

• Reducing bank lending

• Focusing on export growth

What is a key concern for the banking industry during the economic recovery?

• Provisioning for bad loans

• High interest rates

• Decreasing foreign investments

• Lack of government support

What has been the trend in China's bond market during the crisis?

• Narrowing of credit spreads

• Decrease in bond issuance

• Increase in credit spreads

• Stagnation in foreign investment

What is the company's stance on expanding in China?

• They are committed to expansion

• They are reducing their presence

• They are focusing on other markets

• They are uncertain about future plans