China’s Recovery Momentum Has Started to Come Back, Says ANZ’s Wang

The transcript discusses the current state of inflation, focusing on PPI and CPI rates. It highlights the correlation between PPI and industrial profits, emphasizing the sensitivity to global commodity prices. The discussion also covers the impact of PPI on corporate profits and the potential for economic recovery. The role of consumer prices in influencing PBOC policy is examined, with a focus on the swine flu's effect on pork prices. Finally, the transcript reviews economic indicators like PMI and GDP, suggesting a gradual recovery from Q2 onwards.

What is the significance of PPI in relation to industrial profits?

• It is a lagging indicator.

• It has no correlation with industrial profits.

• It is more sensitive to local commodity prices.

• It is a leading indicator.

How does the PPI influence industrial profits?

• It decreases industrial profits immediately.

• It takes three to six months for its effects to be seen.

• It directly increases industrial profits.

• It has no effect on industrial profits.

What is the current stance of the PBOC regarding monetary policy?

• They are likely to tighten policy soon.

• They are maintaining a soft stance.

• They are planning to increase interest rates.

• They are reducing economic support.

What recent data suggests the economy is beginning to recover?

• A decrease in CPI.

• An increase in PMI.

• A drop in PPI.

• A fall in corporate profits.

When is a more sustainable economic recovery expected to begin?

• Late Q1 or early Q3.

• Late Q2 or early Q4.

• Late Q3 or early Q4.

• Late Q4 or early Q1.