Expect China to Cut Rates Twice By Mid 2015: Chang

The transcript discusses China's monetary policy, focusing on the PBOC's approach to interest rate cuts and liquidity management. It highlights the tight liquidity in the interbank market and the impact of a booming equity market. The discussion also covers the recent equity market rally, driven by household asset reallocation and falling rates. Upcoming financial market reforms, including the Deposit Insurance system and changes in IPO registration, are outlined. The transcript concludes with an analysis of investor sentiment and economic challenges, predicting a slowdown in growth despite monetary easing.

What is the expected approach of the PBOC towards monetary easing in 2015?

• Increase in interest rates

• No changes in interest rates

• Cautious easing with limited rate cuts

• Aggressive easing with multiple rate cuts

What has been a significant factor in the shift of household wealth towards the equity market?

• Increase in property prices

• Government restrictions on equity investments

• High returns on wealth management products

• Monetary easing and low interest rates

What reform is expected in the Chinese banking sector?

• Nationalization of private banks

• Introduction of a new currency

• Implementation of the Deposit Insurance system

• Abolishment of interest rates

What is a major structural challenge facing the Chinese economy?

• Lack of skilled labor

• Overcapacity in the manufacturing sector

• High inflation rates

• Shortage of natural resources

What is the expected economic growth rate for China next year?

• 6.5%

• 7.0%

• 7.3%

• 8.5%