If Trade Talks Improve, Should See Strengthening of Yuan, Says CICC’s Yi

The video discusses the potential outcomes of the US-China trade deal, highlighting market expectations and tariff implications. It analyzes upcoming economic data, particularly GDP growth, and its impact on monetary policy. The constraints on monetary policy due to inflation and deleveraging are explored. The fragility of the Chinese consumer market is examined, focusing on auto sales and consumption trends. Finally, the video addresses the impact of trade tensions on currency strength and the central bank's approach.

What are the potential implications of the trade deal with the US and China?

How might the GDP release impact market expectations?

What factors could constrain monetary policy in light of consumer price inflation?

What are the expected outcomes of the monetary policy response to a weaker GDP print?

How does the current economic situation reflect on the structural issues of deleveraging?

What does the recent data on auto sales indicate about the Chinese consumer?

In what ways might the trade talks influence the strength of the currency?