Hao Hong: China Property Market Will Deflate

The video discusses China's economic challenges in 2017, focusing on liquidity issues, market volatility, and policy dilemmas. It highlights the risks associated with debt and monetary policy, the impact of market volatility, and the challenges faced by the central bank in balancing interest rates and currency depreciation. The video also explores the implications of Forex market interventions and capital account management, concluding with policy recommendations for economic stability.

What was one of the main reasons for the rising volatility in China's bond market in 2017?

• Increasing foreign investments

• Strong currency reserves

• Decreasing liquidity

• Stable interest rates

What is a potential consequence if the central bank raises interest rates to manage the property market bubble?

• Decrease in export competitiveness

• Increased foreign investment

• Deflation of the property market bubble

• Strengthening of the Yuan

What is one of the challenges the central bank faces when deciding on interest rate adjustments?

• Balancing currency depreciation and property market stability

• Increasing foreign reserves

• Enhancing technological innovation

• Reducing export tariffs

What is one proposed policy to manage the pressure on China's Forex reserves?

• Increasing export tariffs

• Encouraging foreign investments

• Closing the capital account

• Decreasing interest rates

What is one of the fiscal measures discussed to address economic challenges in China?

• Enhancing digital infrastructure

• Increasing import duties

• Implementing fiscal stimulus

• Reducing public spending