China Vows to Use Monetary Policy Tools at Appropriate Time

The transcript discusses the State Council meeting chaired by Premier Li Keqiang, focusing on economic measures like the MLF and boosting consumption. It highlights the impact of the pandemic on tourism and growth targets. The POC's draft stability fund aims to support troubled financial firms, with efforts to raise significant funds for rural banks and developers. The challenges of containing the outbreak in Shanghai are explored, emphasizing the city's high population density and connectivity, which pose risks of further lockdowns.

What economic measure is being considered to boost consumption according to the State Council meeting?

• Reducing government spending

• Raising interest rates

• Cutting the MLF

• Increasing taxes

What is the main purpose of the POC's proposed stability fund?

• To support technological innovation

• To increase foreign investments

• To stabilize the housing market

• To assist troubled financial firms

What challenge is highlighted in containing the COVID-19 outbreak in Shanghai?

• Insufficient vaccine supply

• Poor public compliance

• Lack of medical facilities

• High population density

How does Shanghai's connectivity to the Yangtze River delta affect the COVID-19 situation?

• It improves economic growth

• It increases the risk of spillover

• It reduces the risk of spread

• It has no impact

What is the potential consequence if Shanghai fails to control the COVID-19 outbreak?

• Improved public health

• Wider risk of rolling lockdowns

• Higher economic growth

• Increased tourism