NatWest Markets' Liu on China's Economy, Covid Impact

The transcript discusses the economic impact of Guangdong and Jillian, highlighting their contributions to China's GDP and car output. It examines the current lockdown's scale and potential policy responses, including aggressive easing by the PBOC. Credit expansion's role in economic recovery is analyzed, noting uneven growth. Challenges in economic activity and transmission mechanisms are explored, particularly in the property sector. Finally, the transcript covers deleveraging policies and future economic expectations, suggesting a marginal easing to offset growth pressures.

What percentage of China's GDP is contributed by Guangdong province?

• 20%

• 11%

• 15%

• 5%

What is the expected duration of the current lockdown compared to the Hubei lockdown?

• Longer than Hubei lockdown

• Shorter, around 4 to 5 weeks

• Same duration as Hubei lockdown

• Indefinite duration

What was a key focus of the PBOC's easing policies in January?

• Increasing exports

• Reducing taxes

• Cutting government spending

• Credit expansion and loan growth

What sector has significantly slowed down, affecting the Chinese economy?

• Technology sector

• Property sector

• Agricultural sector

• Manufacturing sector

What is the current phase of China's deleveraging policy?

• No phase

• Initial phase

• Middle phase

• Late phase