Chinese Economics Thread

[manqiangrexue]

By introducing all these new regulations to protect the low skilled workers you are making it more difficult for low skilled workers to find jobs. Which may create the very unrest in society you want to prevent. Its a paradox!

Has this happened? Or have the new rules reduced inequality while guarding the economy from the effects that you are imagining? Wait for the numbers; don't imagine a result and criticize the decisions of people who are much more qualified than yourself based on your imaginary outcome.

 

[Arcgem]

In isolation, minimum wages and worker benefits can reduce the number of jobs available, and in turn increase unemployment, but that is often not the entire story.

For instance, the workers who are still employed would have more time and money to spend on luxury goods and services. This would increase demand for those luxuries, leading to more job openings in other fields, jobs that could naturally offer higher wages than the old jobs that had vanished.

This is a contrived example, but the point is that economic policy is all about looking at the big picture. A loss of jobs in one area may seem unpalatable to those looking only at that area, but the knock-on effects may end up enriching everyone in the end.

 

[gadgetcool5]

There needs to be a balance in all things. Certain reforms are fine, but if it turns into a never-ending campaign against business it will harm China's economy in the long run. Deng Xiaoping's opening and reform was a great success for China. They shouldn't go back to the days when merchants were looked down on or the economics of the Soviet Union. Business needs to be allowed to thrive and especially tech business and online platforms so China can develop its AI capabilities.

 

[Appix]

That's it. I've had enough. Come on Sherlock. Tell us why high stock price is so important to a company?

The man cries wolf about low fertility and rightfully so because its a huge treat hanging above China's future but also cries wolf when Beijing demolishes expensive private tutoring (and makes it non-profit) which is one of the many reasons that child rearing is so expensive and stressfull for parents. He maybe worships Americanized capitalism above society wide well being.

 

[Team Blue]

Well I wouldn't dismiss stock market. But it is a long term investment. If you choose your stock wisely, have a steel nerve, ride out up and down, then over the time you do make money
Stock is a share ownership in company. Over the year if the company make money you too will make the money. but you cannot make money overnight or in one or two years. Need patience, forbearance and steel nerve.

Need capital before all of that, which I do not have.

 

[siegecrossbow]

There needs to be a balance in all things. Certain reforms are fine, but if it turns into a never-ending campaign against business it will harm China's economy in the long run. Deng Xiaoping's opening and reform was a great success for China. They shouldn't go back to the days when merchants were looked down on or the economics of the Soviet Union. Business needs to be allowed to thrive and especially tech business and online platforms so China can develop its AI capabilities.

Deng solved the problem with making the pie bigger. But if you don’t try to address the problem with distribution then you end up with 996 and high income disparities, which are responsible for societal instabilities.

 

[AndrewS]

Well I wouldn't dismiss stock market. But it is a long term investment. If you choose your stock wisely, have a steel nerve, ride out up and down, then over the time you do make money
Stock is a share ownership in company. Over the year if the company make money you too will make the money. but you cannot make money overnight or in one or two years. Need patience, forbearance and steel nerve.

You don't need steel nerves.

If you invest a set monthly amount into an index tracker for more than 5 years, you will make an average of 7%-9% per year.

 

[siegecrossbow]

You don't need steel nerves.

If you invest a set monthly amount into an index tracker for more than 5 years, you will make an average of 7%-9% per year.

The only way to keep ahead of inflation. Those who can’t afford to invest are getting shafted big time.

 

[weig2000]

You don't need steel nerves.

If you invest a set monthly amount into an index tracker for more than 5 years, you will make an average of 7%-9% per year.

S&P 500 index returns far more than 7-9% a year on average in the last decade.

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[SimaQian]

China Stocks in U.S. Suffer Biggest Two-Day Wipeout Since 2008​

Beijing’s sweeping crackdowns of its technology and education sectors has unleashed shockwaves across global markets, erasing $769 billion in value from U.S.-listed Chinese stocks over the course of just five months.

The Nasdaq Golden Dragon China Index -- which tracks 98 of China’s biggest firms listed in the U.S. -- plunged 7% Monday after regulators in China unveiled an

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of its education sector which bans firms that teach school subjects from making profits, raising capital or going public. That adds to Friday’s 8.5% drop, bringing the gauge’s two-day decline to 15%, its biggest since 2008.

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We should know first why some of these Nasdaq listed Chinese companies particularly those private education/health and online education providers are listed in US instead of Chinese stock exchanges. Why? It is because these companies are not qualified in Chinese stock exchanges. To be able to raise capital in Chinese stock exchanges require at least 3 years profitability, or hi tech such as semiconductor related to be listed in Shanghai Star Market if not yet profitable.

Education and health are supposedly social welfare provided or subsidized by the state. These online private education and tutorials are literally ripping off Chinese parents and providing more pressure to kids saying that they have more advantage than having none.

The authorities simply just listened to population and resorted back to the core social principles.

If there is someone or something to be blamed with these stocks hammering, it is the greed of the companies founders, stock underwriters and investors. Eventually all of these kind of stocks will have zero value.