UBS’s Liu on China Markets, PBOC Policy

The video discusses market focus on liquidity and the impact of US-China negotiations. It highlights the PBOC's current policy stance and potential for stimulus, emphasizing the importance of exchange rates and GDP growth. The challenges faced by small and medium enterprises in China are also addressed, with a focus on the need for government support and fiscal reform.

What is the general market expectation regarding liquidity during the US-China negotiations?

• No change in liquidity

• Accommodating liquidity

• Unpredictable liquidity

• Tightening liquidity

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

• Aggressive tightening

• Complete policy overhaul

• Maintaining current policy

• Immediate rate cuts

What is the expected action by the Fed in July according to the forecast?

• Cut rates by 25 bips

• Increase rates by 100 bips

• Cut rates by 50 bips

• Maintain current rates

What do small and medium-sized enterprises in China primarily need according to the discussion?

• Bridge loans

• Higher taxes

• More loans

• Increased competition

What role can local government fiscal reform play in supporting SMEs?

• Raise interest rates

• Reduce market fragmentation

• Provide more orders

• Increase competition