A lot more policy communication are coming from China with
a goal of having more concerted and co ordinated effort
to stabilize the growth. And we have already seen
some of the policy indeed rate cards triple costs delivered
. At one goal was very helpful to boost the
sentiment. And today's GDP data was also showing data
uh activities growth slowing sequentially, which does require a
lot more support. Given that China has now been
on the transition from what the old property urbanization driven
growth into a new growth model which relies more on
tech innovation, manufacturing and consumption. So we are
still in the transition phase where we face some headwinds
and downward pressures. Given that we do see a
lot more co-ordinated effort that's being rolled out by the
policymaker. That doesn't mean they are giving up on
the transition phase during the transition phase. We still
think stabilization is of a higher priority because the new
new growth engines does need some time to nurture before
they show up to become a more reflationary driver.
So going forward, I think it's safe to say
that in the stabilization environment, we're still going to
see a gradual pick up in growth momentum and that
the new reflationary force will come when a new growth
engine matures in terms of more specifically what the P
BC has been delivering. I think the P BC
focus on two aspects right now. Firstly, is
to cut the cost of financing for the real economy
so that it could help the Corporates and the household
to start leveraging again. And the second aspect of
that is definitely to deliver more liquidity support within the
economy, both towards the capital markets as well as
to the real economy.