Vanguard MD and Asia Pacific Chief Economist on China's Economy

The video discusses the economic slowdown in China due to the delta outbreak and policy tightening, particularly affecting the real estate and energy sectors. It highlights the impact on consumption, with retail and housing sales slowing down. The potential for further RRR cuts and targeted monetary measures by the central bank is analyzed, focusing on liquidity injection to support specific sectors. Recent actions by the PBOC, including MLF and reverse repo operations, are also covered, emphasizing the need for targeted support for SMEs and green investments.

What are the two main factors contributing to the economic slowdown in June and July?

• Trade wars and currency devaluation

• Technological advancements and innovation

• Delta outbreak and policy drag

• High inflation and unemployment

Which sector is expected to show the biggest impact from the economic slowdown?

• Healthcare

• Property sales

• Agriculture

• Technology

What is one of the reasons for the slowdown in auto sales?

• Rising interest rates

• New environmental regulations

• Cheap shortage

• Increased fuel prices

What recent action did the PBOC take regarding liquidity?

• Reduced the amount of MLF

• Introduced new taxes

• Conducted a full rollover of MLF

• Increased interest rates

Which sectors are targeted by the PBOC's quantitative tools?

• Education and research

• Retail and wholesale

• Manufacturing and green investment

• Tourism and hospitality