China’s Domestic Demand Still on a Weakening Trend, Says Natwest Markets’s Liu

The transcript discusses the current economic situation in China, focusing on inflation, easing policies, and GDP forecasts. It highlights the impact of food-driven inflation on CPI, the cautious approach of the PBOC in easing policies due to deleveraging constraints, and the challenges in stimulating the economy through bank lending. The discussion also covers the GDP forecast, indicating potential downside risks and the possibility of the government lowering growth targets.

What is the main driver of the current headline inflation reaching 3%?

• Pork prices

• Oil prices

• Housing costs

• Technology prices

Why is the PBOC cautious in its current easing policies?

• Due to high inflation rates

• Because of deleveraging constraints

• To boost export growth

• To increase foreign investments

What dual mandates is the Chinese economy facing according to the transcript?

• Enhancing education and healthcare

• Boosting technology and reducing pollution

• Controlling debt and maintaining growth

• Increasing exports and reducing imports

What is the forecasted GDP growth rate for the third quarter?

• 6.1%

• 5.5%

• 7.0%

• 6.8%

What might the government do if growth slows further next year?

• Cut down on public spending

• Boost foreign investments

• Lower growth targets

• Increase interest rates