JPMorgan's Zhu Sees Modest Slowdown for China

The transcript discusses the interpretation of PMI readings and their implications on economic indicators, highlighting seasonal distortions and the disparity between manufacturing and non-manufacturing sectors. It addresses concerns about growth targets and economic slowdown, emphasizing the role of financial deleveraging and its impact on sustainable growth. The discussion also covers corporate deleveraging, analyzing debt trends and profitability improvements in the corporate sector, particularly for state-owned enterprises.

What factors might distort the PMI reading according to the text?

How does the text describe the current state of the non-manufacturing sector?

What are the reasons mentioned for the slowdown in economic activity?

What challenges does the text identify for the Chinese economy?

What is the significance of corporate profitability in the context of deleveraging?