China Still Needs More Supportive Measures to Be Implemented, Says ANZ’s Wang

The video discusses the economic challenges China faces due to seasonal factors and pollution control measures. It highlights the need for expansionary credit and fiscal policies to stabilize growth, with a PMI forecast below the 50 threshold. The potential actions of the PBOC are considered, with a focus on monetary policy transmission and the likelihood of further measures. The video also examines credit expansion and the impact of shadow banking on financial conditions for businesses.

What seasonal factor complicates economic comparisons during this time of year in China?

• Summer vacations

• Chinese New Year

• Harvest season

• Monsoon season

What is the PMI forecast for February, and what does it indicate?

• Below 50, indicating economic contraction

• Above 60, indicating rapid growth

• Exactly 50, indicating stability

• Above 50, indicating economic growth

Why is the PBOC unlikely to implement immediate rate cuts?

• Because previous policies need time to take effect

• Due to high inflation rates

• Due to international pressure

• Because of a strong currency

What is one effect of the relaxation in shadow banking activities?

• Higher interest rates

• Improved funding for private sectors

• Increased inflation

• Decreased foreign investment

What is still urgently needed for private sectors despite some improvements?

• More government subsidies

• Access to international markets

• Lower tax rates

• Access to credit