Deutshe Bank's Liu on Yuan Depreciation

The video discusses the depreciation of the yuan and the measures taken by the People's Bank of China to stabilize it, including cutting the FX reserve requirement ratio. It explores factors affecting the yuan's valuation, such as rich valuation, COVID lockdowns, and Fed policy tightening. The market's rational reaction to these changes and the risks of capital outflow are analyzed. The limitations of monetary policy due to policy divergence and the economic outlook, including current account surplus and FDI inflow, are discussed. Finally, the video examines PMI data and future economic projections, highlighting the impact of COVID and potential growth rebound.

What measures are being taken to address the depreciation of the yuan?

How has the FX reserve requirement ratio been adjusted recently?

What are the potential reasons for the continued weakness of the yuan?

Discuss the implications of the Fed's policy tightening on the yuan.

What factors are influencing the capital outflow risk from China?

How do you expect the April PMI numbers to reflect the economic situation?

What is the outlook for China's economic growth in the second half of the year?