China Trade Balance Partially Sentiment Driven, Says NatWest’s Liu

The video discusses the positive market sentiment following the US-China phase one trade deal, highlighting a moderate recovery in trade and a confidence boost. It examines the global economic outlook, noting better-than-expected PMI data and a sentiment-driven recovery. The discussion also covers uncertainties in corporate investments due to potential US-China trade tensions and the impact of deleveraging policies. Challenges faced by local governments in financing infrastructure projects are addressed, along with GDP forecasts for 2020, which predict a gradual slowdown in China's growth with potential upside risks if trade relations improve.

What was the market's reaction to the US-China Phase One trade deal?

• A decline in market confidence

• A boost in market confidence

• No change in market sentiment

• A negative impact on trade activities

What is one of the main uncertainties affecting corporate investments?

• The potential escalation of US-China trade tariffs

• The increase in interest rates

• The stability of the US dollar

• The rise in global oil prices

What is a significant challenge for local governments in China regarding infrastructure projects?

• Excessive foreign investments

• High inflation rates

• Financial constraints due to tax cuts

• Lack of skilled labor

What is the expected GDP growth rate for China in 2020?

• 4.5% to 5.0%

• 6.0% to 6.2%

• 5.8% to 5.9%

• 6.5% to 7.0%

What could potentially lead to an increase in domestic demand in China?

• A decrease in infrastructure investments

• A rise in global commodity prices

• A warming of US-China trade relations

• A reduction in local government spending