Henderson: China's 2017 Focus Is on Capital Controls

The transcript discusses China's focus on political and economic stability, particularly in light of the 19th Party Congress. It examines China's approach to managing currency weakness and capital controls, emphasizing the importance of market control. The potential impact of US politics, specifically Donald Trump's stance on China as a currency manipulator, is also considered. Additionally, the transcript analyzes fluctuations in Chinese interest rates and market dynamics, highlighting the authorities' control over the market.

What is the primary focus of China in the year of the 19th Party Congress?

• Increasing exports

• Military expansion

• Political and economic stability

• Technological advancement

How might China respond to the inauguration of Donald Trump?

• By reducing exports

• By imposing more capital controls

• By increasing military spending

• By devaluing the currency significantly

What could be a consequence of China being labeled a currency manipulator?

• Stronger diplomatic ties

• Higher tariffs on Chinese goods

• Lower interest rates

• Increased foreign investment

What does the spike in Chinese interest rates signify?

• A loss of control by the authorities

• A reminder of the authorities' control

• A decrease in export activities

• An increase in foreign investment

How is the potential weakening of the CNY expected to occur?

• In a linear fashion

• Rapidly and unpredictably

• Gradually and under control

• Not at all