China's Fiscal Situation Has Worsened, Natixis Says

The transcript discusses China's economic growth, highlighting concerns about structural reforms and cyclical slowdowns. It examines the impact of negative investment sentiment and the introduction of the Targeted Mid Term Lending Facility (TMF) to encourage private sector lending. Additional measures, such as bond financing and equity pledging, are also explored to support the economy amid a worsening fiscal deficit.

What is a major concern regarding China's economic growth as discussed in the first section?

• The rise in consumer spending

• The speed of structural growth decline

• The stability of the housing market

• The rapid increase in foreign investments

What is the purpose of the targeted mid-term lending facility introduced by China?

• To boost exports to neighboring countries

• To encourage banks to lend to the private sector at lower rates

• To stabilize the real estate market

• To increase foreign exchange reserves

What challenge do banks face when lending to the private sector under the new facility?

• High risk associated with the private sector

• Lack of demand for loans

• High interest rates compared to the past

• Increased competition from foreign banks

What financial measure is being used to help corporates reduce credit risk in the market?

• Issuing Chinese type CDs

• Implementing new tax policies

• Increasing interest rates

• Reducing government spending

What was the estimated broader fiscal deficit in 2018 according to Natixis?

• 5%

• 7.9%

• 4.2%

• 6.5%