China’s Official Growth Target Around 6.0 in 2020: BofAML’s Qiao

The transcript discusses China's economic situation, highlighting the slowdown in GDP growth and the lack of major policy reactions from the PBOC. It projects future growth to stabilize at a lower level, around 5.6% for the year, due to continued economic pressures. The impact of inflation, particularly from rising food prices due to African swine flu, is examined, but it's noted that this is not the sole reason for the PBOC's cautious approach to monetary easing. The transcript concludes with a discussion on other concerns influencing policy decisions, such as system leverage.

What has been the Chinese leadership's response to the slowdown in GDP growth?

• They have ignored the slowdown completely.

• They have increased monetary easing.

• They have focused on other economic factors.

• They have implemented major policy changes.

What is the expected change in China's growth target for the next year?

• Decrease to 5.0%

• Shift to a target of 6.0%

• Increase to 7.0%

• Maintain at 6.0%

What is one reason the PBOC might be hesitant to implement further monetary easing?

• A decrease in leverage within the system

• An increase in foreign investments

• A stable economic growth rate

• High levels of inflation due to pork prices

What external factor has significantly influenced CPI inflation in China?

• Rising oil prices

• Decreased consumer spending

• Increased exports

• African swine flu

What is the PBOC's stance on the current inflation situation?

• They are planning immediate monetary easing.

• They are considering broader economic concerns.

• They are focusing solely on the pork cycle.

• They are ignoring inflation completely.