China: Mulling the contingency plan – Standard Chartered

Despite a strong start to the year, authorities are preparing for the worst from a possible trade war, according to analysts at Standard Chartered.

Key Quotes

“More RRR cuts are likely to lower funding costs, but credit may remain tight amid the deleveraging drive.”

“Longer term, the strategy is to expand domestic demand to reduce reliance on foreign trade.”

“The yield curve may flatten, reflecting the intention to support the real economy and curb financial leverage.”