China’s Recovery Entering Phase of Stability: Natwest’s Liu

The video discusses China's economic indicators, focusing on the Producer Price Index (PPI) and Consumer Price Index (CPI). It highlights the stabilization trend in China's recovery and the implications for the People's Bank of China (PBOC) regarding inflation and stimulus policies. The discussion also covers the potential exit from pandemic-related stimulus and identifies risks to China's recovery, including COVID-19 uncertainties, US-China relations, and financial regulations.

What does the easing of the Producer Price Index (PPI) in China indicate about its economic recovery?

• A rapid acceleration in growth

• A stabilization trend in recovery

• A decline in economic activity

• An increase in inflation

How does the PBOC view inflation in the current economic climate?

• As a non-issue, allowing for neutral policy

• As a minor issue with little impact

• As a major concern requiring immediate action

• As a reason to tighten monetary policy

What is the PBOC's likely approach to exiting stimulus measures?

• Complete reliance on market forces

• Introduction of new stimulus packages

• Gradual exit from pandemic-related stimulus

• Immediate and complete withdrawal

Which factor is NOT mentioned as a risk to China's economic recovery?

• Potential financial regulations

• Rising inflation

• US-China relations

• COVID-19 uncertainties

What concern might arise if China's growth rate remains positive?

• Tougher financial regulations

• Decreased consumer spending

• Increased foreign investment

• Higher unemployment rates