Ninety One's Wee: China's RRR Cut Was Useful, But Unnecessary

The video discusses recent economic data showing stronger-than-expected growth, particularly in GDP, retail sales, and exports. It examines the role of banks in deleveraging and the impact of regulatory actions on market sentiment. The discussion also covers the implications of a triple R cut on credit markets and the outlook for Chinese high yield bonds, highlighting the ongoing focus on deleveraging and credit tightening.

What was the main reason given for the triple R cut being considered unnecessary?

• The recent economic data was stronger than expected.

• The SME sector was not affected.

• The banks were already strong enough.

• The recent economic data was weaker than expected.

How does the regulatory oversight affect the fixed income markets?

• It increases left tail risks.

• It reduces left tail risks.

• It has no impact on risks.

• It only affects equity markets.

What is the ongoing focus of the PBOC in terms of policy?

• Increasing liquidity in the market.

• Deleveraging and credit tightening.

• Reducing interest rates.

• Expanding the property market.

What was the market's reaction to the triple R cut in terms of Chinese high yield bonds?

• The bonds were sold off heavily.

• The bonds underperformed significantly.

• There was no change in the bond market.

• The bonds saw a positive bounce.

What was a key factor in the performance of Evergrande's perpetual bonds?

• They were considered speculative.

• They were not affected by market changes.

• They were heavily regulated.

• They were bond-friendly.