Wang said the success of the various COVID-19 vaccines was the best hope for global economic recovery this year.
“The large-scale vaccination in 2021 will undoubtedly drive China's export demand,” she said. “But at the same time, the boost of the global economy may put the withdrawal of loose monetary policy on the agenda, which in turn will affect China's financial markets.”
Xing said if the vaccine rollout is a success, inflation could become a major unexpected variable in 2021.
“However, since China's monetary policy is very focused on employment, even if inflation exceeds expectations, it may not necessarily cause the central bank to tighten its monetary policy,” he said. “However, the price increase of industrial products in China will have a significant spillover effect. “
Watch to find out more on the video above.
The above video was shot ahead of the release of the “China in the Year of the Ox: Five Keywords” report from ANZ Research. You can access the full report HERE.