Worst in China’s Current Economic Cycle Is Behind Us, Says BofAML’s Zhi

The video discusses the rebound of PMI data in March, influenced by seasonal factors and targeted stimulus. It highlights growth indicators from the Chinese economy, suggesting modest improvement in upcoming quarters. The Bank of America activity tracker shows a rise, indicating the impact of previous policies. The video also explores potential policy changes by the PBOC, contingent on sustained economic growth and the US-China trade deal, which could reduce external uncertainties.

What factors contributed to the rebound of PMI data in March?

• Improved labor market conditions

• Reduction in interest rates

• Increased exports and foreign investments

• Seasonal factors and targeted stimulus

What is the expected outcome for the Chinese economy in the coming quarters?

• Stagnation

• Rapid economic expansion

• Modest growth improvement

• A significant decline

What does the rise in the Bank of America activity coincident tracker indicate?

• A decline in the Chinese economy

• The impact of previous policy measures

• A decrease in unemployment rates

• An increase in foreign investments

What is one condition for the PBOC to adopt a more neutral policy stance?

• Decreased government spending

• Higher inflation rates

• Sustained growth stability in the Chinese economy

• Increased foreign investments

How might the US-China trade deal affect Chinese policy stance?

• It would lead to increased tariffs

• It would remove some external uncertainties

• It would result in higher interest rates

• It would decrease foreign investments