China Expected to Defend the Yuan If Nears 6.7 Per Dollar

The video discusses the People's Bank of China's (PBOC) strategies for currency intervention, including fixing and tightening interbank liquidity. It examines risk reversals as indicators of market sentiment, noting recent spikes but less panic compared to 2015. The video also covers the impact of bond market measures on housing speculation, highlighting potential challenges for property developers and the broader market sentiment.

What is one of the tools the PBOC can use to support the currency?

• Increasing interest rates

• Fixing the currency

• Reducing taxes

• Increasing government spending

What do risk reversals indicate in the market?

• Bullish sentiment

• Bearish sentiment

• Volatile sentiment

• Neutral sentiment

How do current risk reversals compare to those in 2015?

• They are slightly higher now

• They are much higher now

• They are much lower now

• They are about the same

What is a direct impact of slowing approvals for offshore bonds?

• Higher stock market prices

• More defaults in the onshore bond market

• Easier refinancing for developers

• Increased foreign investment

Why do analysts praise the move to slow bond approvals despite negative impacts?

• It boosts immediate market sentiment

• It encourages more speculation

• It reduces long-term risks

• It increases short-term profits