00:00China is indeed unavoidably from an emerging country now to become more developed in the economy.
00:06You will somehow along the way will have a bumpy road that face quite a lot of challenges along the
00:12way.
00:12Particularly in this world, there is plenty of issues, not only domestically,
00:18also actually introduced another layer of geopolitical rigs, so on and so forth.
00:21But I think China has been doing well.
00:23One, in terms of navigating these complicated environments, both domestically and externally.
00:30Second, keep enough dry powder on the side to support the economy whenever it's needed, wherever it's needed.
00:38So both of the policy directions and then stay in the market under, you know, manage the market under control,
00:44which is important to have a stable policy announcement.
00:48And third, clearly all the policy meetings, all the leadership meetings come out with a statement,
00:54which is very strong, stating how and when and what they would like to support the economic on.
01:01I think these are what investors needed from the policymaker.
01:05I mean, there's no sign of any major policy change or announcement, is there?
01:09I mean, this is steady as she goes.
01:12I agree completely.
01:14If any investors are expecting helicopter money, this is not the scenario you're going to get.
01:19But I think market is not expecting that either.
01:21Market is expecting China policymaker continue to be on the managed side, the control side,
01:28and very targeted measure, either to release, you know, more bank liquidities and make credit borrowing easier
01:34or provide more fundings to AI and technology source of business
01:38and continue to support R&D for startups and Unicom companies in China.
01:44That is the path they chose to choose.
01:48President Xi acknowledging the need to tap the potential of domestic demand during the rest of the year.
01:54That's all about confidence, isn't it?
01:55I mean, it's easier said than done.
01:58Trying to fire up confidence around the world is rather tricky.
02:02I agree completely.
02:03But China is a different issue than a liquidity issue.
02:07China's households are raging liquidity.
02:08If you look at their saving accounts, it's very high in records compared to any country
02:13with the same speed of economic development.
02:16China is high on savings.
02:18So China is never a liquidity issue, not households short of cash, short of money to spend.
02:23It is a confidence issue.
02:25Anything they could do to boost up confidence, providing a stable job market,
02:29provide a stable income, increased income,
02:32any of those measures continuously to get support from a government
02:36will continue to increase and build up confidence and sentiments in the investors or in the households.
02:42Eventually, boost consumer demand is a long-term goal to achieve.
02:49It's not a short-term lift.
02:50And you don't want a short-term lift anyway.
02:52So I think China's consumer demand is a structural issue rather than cyclical.
02:58Xiaolin Chen, good to see you.
02:59And thanks so much for coming on the program again.
03:01Xiaolin Chen, the head of international at Crane Shares.
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