Fiscal Easing to Be Key in China's National People's Congress, Morgan Stanley Says

The video discusses the expectations from the NPC, focusing on a pro-growth agenda without compromising financial stability. It highlights a fiscal stimulus package and potential growth targets for China. The discussion also covers the buildup of debt and credit creation, emphasizing the use of transparent financing tools over shadow banking. The first quarter shows weak GDP growth, but improvements are expected in the second quarter.

What is the main focus of the fiscal stimulus package discussed in the NPC meeting?

• Decreasing corporate bonds

• Increasing shadow banking activities

• Providing tax cuts and increasing bond issuance

• Reducing government spending

What growth target range is being considered, and how does it compare to the consensus forecast?

• 4% to 4.5%, which is lower than the consensus

• 7% to 7.5%, which matches the consensus

• 6% to 6.5%, which is lower than the consensus

• 5% to 5.5%, which is higher than the consensus

What is expected to happen in the second quarter according to the economic forecasts?

• A recovery in PMI and an increase in growth

• A decline in PMI and growth

• Stagnation in economic activities

• A significant drop in GDP

How is the buildup of debt being managed to stabilize growth?

• By focusing on corporate and government bonds

• By increasing shadow banking activities

• By reversing financial cleanup efforts

• By reducing the debt to GDP ratio

What is the expected role of corporate CapEx in the future?

• It will be replaced by short-term financing

• It will increase later on

• It will decrease significantly

• It will remain unchanged