China Expected to Ease Policy Further, T. Rowe Price's Poullaouec Says

The video discusses the challenges faced by the Chinese bond market, including rising yields and economic slowdown. It explores potential policy easing by the PBOC and its impact on the economy and currency. The correlation between the yuan and emerging market currencies is analyzed, highlighting volatility. Investment strategies in Asia are discussed, with a focus on emerging market debt and equities, particularly in China and LATAM, considering extreme valuations and market overhangs.

What is one of the main challenges faced by Chinese officials in maintaining economic stability?

• Stable liquidity conditions

• Decreasing inflation rates

• Rising borrowing costs

• Increasing foreign investments

What is expected to happen in China as a result of more policy easing?

• Decrease in export activities

• Increase in foreign debt

• Market-oriented currency devaluation

• Strengthening of the yuan

How has the yuan's correlation with emerging market currencies been described?

• Volatile over the past two years

• Stable over the past two years

• Weakening consistently

• Strengthening consistently

What stance is taken on emerging market debt according to the discussion?

• Strongly positive

• Neutral

• Overweight

• Strongly negative

What is a major factor preventing a strong bullish stance on Chinese equities?

• Trade policies and dollar strength

• Weak domestic demand

• Low foreign investment

• High inflation rates