Huatai Securities' Yi on China's Power Crunch Impact on the Economy

The transcript discusses the impact of inflation on CPI and economic stability, noting limited spillover to consumer prices. It highlights GDP forecast downgrades due to fiscal tightening and pandemic effects, with potential growth driven by trade surplus. The discussion covers deleveraging efforts, particularly concerning Evergrande, emphasizing minimal state capital use to manage risks. It also examines risks among property developers, stressing government supervision to prevent market spillover.

What has been the impact of higher inflation on consumer prices?

• Decrease in consumer prices

• Limited spillover to consumer prices

• No change in consumer prices

• Significant increase in consumer prices

What is one reason for the downgrading of GDP forecasts?

• Expansion of the property sector

• Increase in consumer spending

• Fiscal tightening and restrictive policies

• Rise in global oil prices

What is the expected growth rate for the fourth quarter driven by trade surplus?

• Below 3%

• Around 5%

• Above 7%

• Exactly 6%

How is the government managing the systemic risks associated with Evergrande?

• By ignoring the risks

• By increasing state capital injection

• By using minimal state capital

• By nationalizing Evergrande

What is the government's approach to the deleveraging campaign?

• Rapid increase in state capital use

• Immediate nationalization of all property developers

• Adjusting on the margin to avoid spillover

• Complete halt of the campaign

What is a potential risk for other property developers similar to Evergrande?

• Decrease in property prices

• Expansion of overseas markets

• Increased government subsidies

• Overgrown balance sheets due to leverage

How is the government addressing cash flow issues in the property sector?

• By loosening cash flow regulations

• By tightening scrutiny over cash flow

• By providing unlimited financial aid

• By ignoring cash flow issues