ANZ's Yeung on China's Economic Prospects

The transcript discusses the uncertainty in economic expectations and the positive indicators seen in China's economy due to reopening. It highlights growth projections, retail sales, and consumer recovery, noting the uneven recovery in services and luxury sectors. The issue of youth unemployment is addressed, emphasizing its impact on economic growth and the need for job creation. The transcript also explores the internationalization of the Renminbi and its implications for trade settlement, noting the interest from countries like Brazil and Saudi Arabia.

What was the unexpected trend in China's GDP data during the first quarter of 2023?

• A decline in GDP growth

• A record high in construction PMI

• A significant drop in retail sales

• A decrease in export numbers

How did the Shanghai lockdown affect retail sales in the second quarter?

• It led to a surge in luxury goods sales

• It had no impact on sales

• It caused a decline in sales

• It boosted sales due to the base effect

What is a major concern for Chinese policymakers regarding youth unemployment?

• It is expected to decrease significantly

• It remains stable at 10%

• It is likely to increase with new graduates

• It has no impact on the economy

Why is youth employment crucial for boosting China's economy?

• Young people tend to save more

• Young people spend more than older generations

• Youth employment has no impact on the economy

• Older generations drive economic growth

What is the current percentage of goods trade settled in Renminbi?

• 50%

• 5%

• 30%

• 17%

Which countries have shown interest in settling trade with China in yuan?

• India and Japan

• United States and Canada

• Germany and France

• Saudi Arabia and Brazil

What is a potential outcome of increased trade settlement in yuan?

• Complete de-dollarization

• A shift towards the euro

• A petrol yen phenomenon

• More countries using yuan for bilateral trade