PBOC Says Lower M2 Growth May Become China's New Normal

The transcript discusses China's economic situation, focusing on the 1% GDP growth and the concerns of the PBOC regarding the velocity of money. It highlights the need for economic adjustments and the role of shadow banking in China's financial structure. The discussion includes the breakdown of credit data, showing a pullback in shadow banking elements, and the measures taken by authorities to raise money market rates. The transcript also covers the impact of these financial policies on the bond and stock markets, and the potential effects on the real economy if it starts to slow down.

What are the key reasons mentioned for the economy in China doing well?

What does the recent credit data indicate about the financial situation in China?

How has the PBOC responded to the shadow banking elements in China?

What measures are being taken to contain excessive borrowing in China?

What challenges might arise if the real economy in China starts to slow?