Ninety One Portfolio Manager Wilfred Wee on China's Default Outlook

The transcript discusses the potential intervention by the PBOC in Huarong's bad assets and its implications for moral hazard. It highlights the tightening of Chinese credit policy and its impact on market nervousness and systemic risk. Opportunities in the credit market due to changes in credit spreads are explored, particularly in Asia. The approach for foreign investors towards the Chinese credit market is discussed, emphasizing the role of credit ratings and market discipline. Finally, the transcript examines inflation dynamics in China, focusing on raw material prices and labor market conditions.

In what ways can the Chinese government signal to the market regarding borrowing practices?

What role do credit ratings play in investment decisions in the context of tightening credit policies?

What are the implications of rising inflation pressures in China for investors?