PBOC Needs to Cut Benchmark Lending Rate, Says JPMorgan’s Chang

The transcript discusses the impact of shadow banking on China's GDP and credit growth, highlighting the government's deleveraging campaign. It covers the People's Bank of China's (PBOC) efforts to inject liquidity and stabilize credit growth, including bond insurance and targeted easing measures. The challenges faced by SMEs due to credit risk and rising defaults are addressed, along with the need for further monetary policy adjustments. Currency constraints are identified as a barrier to more aggressive monetary easing, but opportunities for policy changes are noted with a strong CNY and Fed pause.

What impact has shadow banking had on Chinese credit growth?

How has the PBOC responded to the challenges in the credit market?

What are the expected outcomes for credit growth in the first quarter of 2019?

What measures has the Chinese government taken to support SMEs?

Why might the PBOC be hesitant to cut the benchmark lending rates?