Lombard Odier's Lee: Already Have Tactical Exposures to China

The transcript discusses the acceleration of PPI in China and South Korea, and the potential impact on market assets. It highlights the importance of the Fed's reaction to US inflation data and the new framework of average inflation targeting. The discussion extends to central banks in Asia, particularly the Bank of Korea, which may raise rates due to financial stability concerns. The transcript also covers China's policy options in response to rising prices and property market issues, emphasizing macro potential tightening and the PBOC's role.

What is the primary focus of the markets according to the first section?

• The growth rate of credit in China

• The impact of political pressures on central banks

• The rise of PPI in South Korea

• The Fed's reaction to US inflation data

Why might the Bank of Korea be one of the first to raise rates in Asia Pacific?

• To align with the Federal Reserve's policies

• To address financial stability and property prices

• To counteract a decrease in global expansion

• Due to a significant rise in Korean inflation

What is a common concern among central banks in Asia, as discussed in the second section?

• The impact of US inflation data

• Rising property prices and financial stability

• The strength of the renminbi

• The deceleration of credit growth

What has been the main strategy of China to manage its property sector?

• Strengthening the renminbi

• Increasing interest rates

• Macro potential tightening

• Reducing market liquidity

What is the expected outcome of China's slowdown in credit growth?

• Gentle deceleration in growth

• A stronger renminbi

• Increased inflation pressures

• Higher producer prices