jing ulrich

jing ulrich

Inevitable that China slowdown will affect the rest of the Asia-Pacific region

1mo ago
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INEVITABLE THAT CHINA SLOWDOWN WILL AFFECT THE REST OF THE ASIA-PACIFIC REGION ANCHOR QUESTION OFF-CAMERA (ENGLISH) SAYING: Do you see any change in Chinese holdings of US treasuries going forward? JING ULRICH, VICE-CHAIRMAN OF ASIA PACIFIC AT JP MORGAN CHASE (ENGLISH) SAYING: Well, you know, it is unlikely to change dramatically. China is the single largest holder of US treasuries in the world. It has $1.5 trillion of US government debt. China's foreign exchange reserves have grown very rapidly over the years; now, it stands at $3.8 trillion, out of which $1.5 trillion is invested in US treasuries. So even though China may buy incrementally less, it really cannot sell down too much given the huge size of the Chinese holdings. ANCHOR QUESTION OFF-CAMERA (ENGLISH) SAYING: What needs to happen next on the reform front? JING ULRICH, VICE-CHAIRMAN OF ASIA PACIFIC AT JP MORGAN CHASE (ENGLISH) SAYING: Obviously, this is a very long and involved, and complicated journey. What would be the best next steps in your view? Well, you know, China needs to undertake painful structural reforms, which means several things: number one, they need to reduce leverage and debt ratios in the economy; number two, they need to shut down some of the inefficient factories in industries that are experiencing a lot of overcapacity including steel making, aluminum smelting, etc; number three, they need to really give private companies and small-medium size enterprises more support, more financial support and more policy support so that the economy can actually be much more oriented towards consumption, services rather than relying on large state-owned companies, a lot of which are in old economy sectors which are polluting but also absorbing a lot of the society's financial resources. ANCHOR QUESTION OFF-CAMERA (ENGLISH) SAYING: How much concern is there that this slowdown in China will move beyond China's borders and impact other countries in the Asia-Pacific region? JING ULRICH, VICE-CHAIRMAN OF ASIA PACIFIC AT JP MORGAN CHASE (ENGLISH) SAYING: Well, it's inevitable ...