Markets Starting to Price in Worst-Case Scenario on Trade War, Says Bocom International

The video discusses the escalating trade tensions and their impact on global markets, focusing on China's economic slowdown and the lack of credit growth. It highlights China's policy priorities, particularly in the property market, and examines the implications of currency exchange rates and interest rate differentials between the US and China. The discussion suggests that further economic challenges are expected due to these factors.

What is the market's response to the escalating trade tensions between China and other countries?

• The market is optimistic about a quick resolution.

• The market is indifferent to the tensions.

• The market is starting to price in the worst-case scenario.

• The market is focusing on other global issues.

What is one of China's policy priorities mentioned in the transcript?

• Expanding credit growth

• Increasing property speculation

• Containing the property bubble

• Reducing trade tariffs

What challenge is China facing in terms of property and credit demand?

• High demand for property

• Difficulty in expanding demand

• Excessive credit growth

• Rapid economic expansion

What is influencing the Chinese yuan's exchange rate beyond economic fundamentals?

• Interest rate differential

• Political factors

• Other non-economic factors

• Global oil prices

What is expected regarding the future of the Chinese yuan's exchange rate?

• It will fluctuate unpredictably.

• It will remain stable.

• It will strengthen significantly.

• Further weakening is expected.