Macquarie's Hu Says China Serious on Deleveraging in 2018

The transcript discusses China's economic reforms, focusing on deleveraging and its associated risks. It highlights the challenges Beijing faces in balancing economic growth with structural changes, particularly in the context of local government debt and infrastructure spending. The discussion also covers the policy approach of mini cycles and mini stimulus, emphasizing the need for a new perspective in the upcoming five-year political cycle. The overall outlook suggests a more serious approach to economic restructuring, with limited room for further leveraging.

What is one of the main challenges Beijing faces in implementing structural reforms?

• Increasing foreign investments

• Balancing economic growth with reforms

• Reducing unemployment rates

• Enhancing technological innovation

What is a significant risk associated with China's deleveraging efforts?

• Rising inflation rates

• Decreasing foreign trade

• Impact on the real economy

• Increased unemployment

How have Chinese policymakers typically responded to economic slowdowns in the past five years?

• By increasing taxes

• By reducing government spending

• By implementing mini-stimuli

• By encouraging foreign investments

What is the government's stance on economic risks in the new five-year cycle?

• They will increase leverage

• They are more serious about addressing them

• They are less concerned than before

• They plan to ignore them

What has limited the room for further leveraging in China's economy?

• Improved technological advancements

• Increased foreign investments

• Higher economic risks

• Decreased government spending