China’s Policy Response to Virus Is Encouraging Markets: Aviva Investors

The video discusses the market's interpretation of a weaker Chinese currency and the comprehensive policy measures China is implementing to counteract the economic impacts of a virus. It explores the assumption of a V-shaped recovery, drawing parallels with past epidemics like SARS, while highlighting uncertainties in the economic impact and the persistence of risk aversion in the market.

What is one of the strategies used by Chinese authorities to counteract the economic effects of the virus?

• Raising interest rates

• Reducing local government bond issuance

• Weakening the currency

• Increasing export tariffs

What type of recovery do most economists expect following the virus outbreak?

• L-shaped recovery

• U-shaped recovery

• V-shaped recovery

• W-shaped recovery

Which previous epidemic is used as an analog for predicting the current economic scenario?

• Ebola

• H1N1

• SARS

• MERS

What is a major concern for investors regarding the economic impact of the virus?

• The rise in commodity prices

• The speed of the recovery

• The depth and timing of the drawdown

• The increase in global trade

Which sectors are still pricing in a reasonable amount of downside risk?

• Technology and healthcare

• Retail and manufacturing

• Energy and commodities

• Real estate and finance