Staying Neutral on China, Lombard Odier's Lee Says

The transcript discusses China's economic risks and the policy signals from authorities. It highlights the focus on fiscal policy, including potential higher deficit targets and Treasury bond issuance. The need for positive inflation and the role of monetary policy are also addressed. The discussion emphasizes the importance of a flexible framework and outlines a market strategy in the absence of significant policy changes.

What is the main tool the authorities plan to use to support the economy?

• Regulatory policy

• Trade policy

• Fiscal policy

• Monetary policy

What is needed for the economy to provide a cushion for domestic businesses?

• Higher interest rates

• Positive inflation

• Stricter regulations

• Increased exports

What is a challenge mentioned in implementing monetary policy changes?

• Lack of government support

• High inflation rates

• Low consumer confidence

• Resistance to open capital accounts

What is the risk associated with the current economic framework?

• Inadequate monetary easing

• Framework not changing

• Inflexible fiscal policies

• Lack of technical solutions

What market strategy is suggested in the absence of significant policy shifts?

• Focus on domestic markets only

• Neutral versus emerging market benchmark

• Aggressive investment in emerging markets

• Increase in foreign direct investment