China Will Have to Put More Fiscal Policy to Work: Leong

The transcript discusses the negative impact on economic outlook due to turmoil in the property and trust sectors, leading to a lower growth outlook and potential depreciation of the CNY. It explores the challenges in determining the fair value of the currency amidst China's projected growth of 3.5% to 4.5%. The discussion highlights the bond market trends, emphasizing the need for fiscal policy to address economic challenges. Additionally, it examines inflation risks in regions outside China, particularly in ex-Asia EM countries, and the strategic shift towards Asian markets due to their resilience against El Nino risks.

What are the two sectors in China that are currently in turmoil, affecting the economic outlook?

• Technology and Manufacturing

• Property and Trust

• Healthcare and Education

• Agriculture and Retail

What is the expected growth range for China over the next two to three years?

• 3.5% to 4.5%

• 1.5% to 2.5%

• 7.5% to 8.5%

• 5.5% to 6.5%

What is the potential impact of fiscal policy on China's yield curve?

• Bull steepening of the curve

• Flattening of the curve

• Inversion of the curve

• No impact on the curve

Which natural phenomenon is mentioned as a risk factor for inflation in emerging markets?

• Monsoon

• El Nino

• La Nina

• Hurricane

Which countries are noted for effectively managing El Nino risks in the past?

• Brazil and Argentina

• South Africa and Nigeria

• India and Indonesia

• Russia and Ukraine