China May Look at Relaxing Capital Curbs

The video discusses the gradual liberalization of China's capital account, emphasizing the importance of reform sequencing and domestic priorities like deleveraging. It examines credit data trends, regulatory success in India, and the shift from shadow banking to mainstream lending. The discussion also covers inflation pressures in China, predicting a slowdown in economic growth but maintaining inflation within the target range.

What is the primary focus of Chinese regulators in their gradual approach to capital account liberalization?

• Immediate removal of all capital controls

• Correct sequencing of reforms

• Increasing foreign investments

• Reducing domestic consumption

In the context of India's regulatory efforts, what is the main concern regarding the observed changes?

• Increase in foreign debt

• Credit deceleration versus deleveraging

• Rise in inflation rates

• Decrease in foreign investments

Which institutions are suggested to be the focus of reform efforts to sustain deleveraging momentum in India?

• First-tier banks

• Non-bank financial institutions

• Government agencies

• Foreign investment firms

What is the general outlook on inflation pressure in China according to the transcript?

• It is expected to derail the economy

• It is a major concern for the government

• It is not expected to derail the economy

• It will lead to a recession

What is the soft target for inflation in China as mentioned in the transcript?

• 1%

• 3%

• 4%

• 2%