Why China's Economy Needs More Stimulus: BNY Mellon's Cox

The transcript discusses China's economic situation, focusing on the need for smart stimulus to address deflation and underutilization of capacity. It highlights the importance of targeted lending and fiscal policies, such as tax cuts and social spending, over traditional infrastructure investments. The discussion also covers the impact of stock market connect schemes, like the Shanghai-Hong Kong Connect, on China's financial markets and the potential for future growth through strategic positioning in markets like Shenzhen.

What is the main reason for the need for more stimulus in China according to the first section?

• Overcapacity in production

• Excessive credit growth

• Deflation in several provinces

• High inflation rates

What does 'smart stimulus' refer to in the context of the second section?

• Broad-based tax cuts

• Decreasing interest rates

• Targeted relending programs

• Increased infrastructure spending

Which traditional approach to stimulus is critiqued in the second section?

• Monetary easing

• Infrastructure investment

• Tax incentives

• Social spending

What fiscal policy is mentioned as a way to support economic growth in the third section?

• Increasing tariffs

• Reducing government spending

• Tax cuts for small enterprises

• Raising interest rates

What is the strategic goal of the Hong Kong Shanghai Connect mentioned in the third section?

• To reduce foreign investment

• To limit market access

• To increase bank dependency

• To mature China's stock markets