Chinese Economics Thread

manqiangrexue

manqiangrexue

Brigadier
voyager1 said:
Yes. But the bondholders will also want to liquidate Huarong's assets in order to get back some of their money.

Is China prepared to do this, or will they just throw foreign bondholders under the bus (again)?

We heard a lot of talk and grand speeches about how China is now fully committed to reforms but when something happens....lol

They just throw foreign investors/bondholders under the bus, redistribute the assets to a "new" company and then they start again. If they really think that the foreigners are so stupid then dont be surprised if they stop investing in these companies.
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Good, if anybody needs to be thrown under the bus, do it to the foreigners. They will never stop investing in China; if they could, they would have done it already when it became clear that China is the only nation capable of toppling Western dominance. When the chance to earn money arises, their eyes glitter up and they rush in like moths to a flame. And when they lose money, they curse that China was unfair, and it will repeat again and again.
voyager1 said:
Less talk, more work
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Take your own advice. There is nobody here who needs to talk less and post less overreacting trash comments than you.
 
K

KYli

Brigadier
That's absurd. Alibaba and other major tech firms have actually invested billions extra each year to insulate themselves from the coming slowdown due to losing their monopolies power. You take away their easy money which would force them to innovate and invest and find other sources of incomes. Just because the US doesn't have the gut to go after tech giants, it doesn't mean China feels the same.
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Walking away due to financial reasons make sense. But walking away due to global warming isn't especially most of these countries desperately need electricity for development.
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K

KYli

Brigadier
Too big to fail and state guarantee is a concept that needs to be do away with. Chinese government has been trying to distance itself from state guarantee in order to facilitate a better investment environment. Many foreign investors invested in high yield Chinese state owned companies thinking that these companies have state guarantee. For decades, Chinese government has bailed out many state owned companies so investors get emboldened to take more risks. However, it is no longer rational to continue such practices as it would hinder allocation of capitals and build excess capacity.

Chinese government is sending a message to foreign investors for the last few years that it would no longer guarantee state owned companies. Chinese government is doing this very slowly and only a handful of such companies are defaulted. But the message is clear and loud. It is time for foreign investors to be more selective in investing in state owned government bonds.
 
AssassinsMace

AssassinsMace

Lieutenant General
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I saw that interview on CNBC. The interviewer Becky Quick was defensive when Munger said he liked how China stops speculation in the economy. Yes no one is allowed to say anything about China is good. You can only say bad things while the US is perfect and no one can say anything bad about the US. Don't believe "cancel culture" is something new. Like political correctness it's been around a long time. The only difference is it worked for the majority for all this time. It's only given a name now because it's being used against the majority.
 
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