Downside Risks to China’s Growth Intensifying: SEB’s Victorino

The video discusses the intensifying downside risks in China's market, particularly focusing on credit growth concerns amidst an imbalanced recovery. It highlights the potential moderation in sequential growth and the implications for companies, especially in relation to the People's Bank of China's (PBOC) role in maintaining market discipline. The discussion also covers the challenges faced by small and medium-sized enterprises (SMS) due to tight credit access and the overall economic outlook.

What is the main concern regarding China's economic recovery?

• The favorable base effects in Q1

• The intensifying downside risks

• The imbalanced nature of credit growth

• The increase in supply of credit

How does strong growth affect policymakers' actions according to the speaker?

• It causes a decrease in corporate bond defaults

• It leads to monetary policy tightening

• It encourages imposing market discipline

• It results in increased credit supply

What has been observed in the corporate bond market?

• A continuation of bond defaults

• An increase in bond issuance

• A decrease in bond defaults

• A stabilization of bond prices

What challenge do SMEs face according to the speaker?

• Easy access to credit

• High credit impulse

• Tight access to credit

• Low interest rates

What trend has been observed in the credit impulse from May to December?

• It has remained stable

• It has decreased significantly

• It has fluctuated unpredictably

• It has increased significantly