China's Economic Growth to Moderate, Morgan Stanley's Xing Says

The transcript discusses China's economic situation, focusing on the PMI numbers indicating weakness due to domestic deleveraging and trade tensions. It highlights the impact of these tensions on growth, particularly in export orders and inventory buildup. The discussion covers expectations for GDP growth, with a moderate decline anticipated due to resilient domestic consumption and infrastructure recovery. The People's Bank of China (PBOC) has implemented defensive monetary measures to limit credit growth risks. The transcript concludes with efforts to stabilize economic growth through credit and infrastructure investments.

What are the two main challenges China has been facing in the past six months?

• Political instability and corruption

• Domestic deleveraging and external trade tensions

• High inflation and unemployment

• Currency devaluation and stock market crash

What is the expected GDP growth rate for China in the second half of the year?

• 7.0%

• 6.5%

• 6.2%

• 6.8%

What measures has the PBOC taken to limit the downside risk of credit growth?

• Implementing stricter banking regulations

• Reducing government spending

• Injecting liquidity and loosening regulatory tightening

• Increasing interest rates

What is the expected stabilization rate for broad credit growth in China?

• 10%

• 9%

• 12%

• 11%

How much is the local government bond issuance expected to reach in the second half?

• 1.2 trillion

• 1.5 trillion

• 1.8 trillion

• 2.0 trillion