Nomura's Lu says China's Growth Target Too High

The video discusses China's fiscal stimulus, highlighting the government's conservative approach and the impact of declining local government revenue from land sales. It explains the fiscal deficit, surplus funds, and the importance of off-budget spending. The challenges faced by the property market, including companies like Evergrande, are examined, along with the government's cautious measures to control the market and shift resources to the tech sector. The video also touches on the growth of exports and the overall economic landscape.

What is the main reason for the decline in local government revenue in China?

• Lower consumer spending

• Decrease in exports

• Decline in land sales

• Reduction in manufacturing output

How does the Chinese government plan to manage its fiscal deficit this year?

• By using surplus funds from last year

• By increasing taxes

• By borrowing more from international markets

• By cutting public spending

What is the expected approach of the Chinese government towards easing measures for the property sector?

• Complete deregulation of the sector

• Massive large-scale interventions

• Bottom-up and piecemeal measures

• Top-down policy changes

What percentage of China's GDP is contributed by the property sector?

• 40%

• 25%

• 10%

• 50%

What was the year-over-year growth of exports in the first two months?

• 25%

• 20%

• 16%

• 10%