Asks for reaction to NPC work report and softer growth target, given need for stability amid uncertainties.
Host
Huang Yiping
Growth is under downward pressure, but this is not a crisis time requiring very aggressive big stimulus. Focus is on stabilizing growth while improving quality through structural adjustment and new productive forces.
Asks what message markets should take about being patient for the economy to respond, given they look for big bazookas.
Host
Huang Yiping
We should not expect very aggressive big-bang macro policy to support growth. The government report says growth needs support through structural adjustment.
Asks how to square government priority on high-end manufacturing/self-sufficiency with the need to boost consumption.
Host
Huang Yiping
Government emphasizes three things: expanding domestic demand/consumption, developing new quality productive forces, and resolving existing risks. Consumption boosting is a gradual process.
Asks about attitudes toward lack of inflation and tone in policy discussions.
Host
Huang Yiping
Lack of inflation is due to imbalance between domestic demand and supply. The government is making the CPI target more serious and will try to achieve mild inflation.
Asks how to get to 2% inflation and if there are concrete measures to boost household income.
Host
Huang Yiping
Fundamentally, sluggish inflation is due to demand-supply imbalance. Expanding domestic demand, especially consumption, is key. More aggressive monetary policy might help, but boosting consumption is critical.
Asks about expectations for the upcoming briefing with PBOC, NDRC, Ministry of Finance, and what to watch for.
Host
Huang Yiping
Expects concrete fiscal and monetary measures to support growth, like further rate cuts and RRR cuts, but no clear roadmap or very aggressive macro policy.
Asks if we can look through the spike in global energy prices regarding transmission to inflation in China.
Host
Huang Yiping
The key concern is lack of inflation, not high inflation. A rise in energy prices won't be devastating for China, though it will have some impact.