NatWest Markets' Liu on China's Inflation

The video discusses China's economic situation, focusing on inflation, growth concerns, and the impact of COVID-19. Pork prices have driven up China's CPI, but core inflation remains subdued due to weak domestic demand. The main concern is the lack of growth, exacerbated by COVID-19 lockdowns. Fiscal stimulus through infrastructure bonds is considered, but the government is cautious about aggressive measures. The COVID-19 strategy poses a significant risk to growth, but new policies may introduce more certainty.

What is the main factor driving up China's CPI according to the discussion?

• Housing costs

• Pork prices

• Transportation fees

• Energy prices

What is the primary concern for China's economy as mentioned in the second section?

• Rising energy prices

• Slowing domestic demand

• Increasing export tariffs

• High unemployment rates

What is the estimated GDP growth for China this year according to the discussion?

• 5.5%

• 4%

• 6%

• 3.5%

What is the government's approach to using local government bonds as a stimulus?

• Focusing on international bonds

• Reducing bond issuance

• Aggressively increasing bond issuance

• Cautiously using the old playbook

What is the biggest risk to China's growth as discussed in the final section?

• Currency devaluation

• Rising inflation

• COVID-19 restrictions

• Trade wars