Ex-PBOC Official Warns More Reserve-Ratio Cuts Risk Asset Bubbles

The video discusses the Chinese economy's response to the global trade war, focusing on targeted stimulus measures like reserve ratio cuts by banks. It highlights recent economic data showing a stabilization in growth, despite distortions from the Lunar New Year. However, concerns are raised about excessive stimulus leading to asset bubbles and inflation, particularly in the property market. An official from the PBOC warns that further reserve ratio cuts could exacerbate these risks.

What indicators suggest a bottoming out of the growth decline in the Chinese economy?

In what ways can cutting reserve ratios impact inflation and the property market?