Chinese Government Has Room to Raise Debt Ratio, UBS's Hu Says

The video discusses strategies for foreign investors in the Chinese equity market, emphasizing a barbell strategy that balances defensive stocks with growth sectors. It speculates on the potential increase of China's fiscal deficit from 3% to 4% of GDP, which could lead to more central government bond issuances and increased liquidity. The discussion also covers China's debt management, suggesting that the central government has room to raise its debt-to-GDP ratio to support fiscal stimulus, focusing on boosting demand rather than supply.

What is the barbell strategy mentioned for foreign investors in the Chinese market?

• Investing solely in technology stocks

• Investing equally in all sectors

• Focusing only on high-risk sectors

• Balancing between defensive and growth sectors

What is the proposed increase in China's fiscal deficit as a percentage of GDP?

• From 2% to 3%

• From 3% to 4%

• From 4% to 5%

• From 5% to 6%

What could be a consequence of raising the fiscal deficit in China?

• Reduction in market liquidity

• Lowering of GDP growth

• Creation of a stock stabilization fund

• Decrease in central government bond issuances

What is China's current central government debt-to-GDP ratio?

• 250%

• 100%

• 50%

• 24%

Compared to the US and Japan, how does China's total government debt level stand?

• Higher than both

• Lower than both

• Higher than the US but lower than Japan

• Lower than the US but higher than Japan