Chinese Economics Thread

[Tyler]

China's rate of urbanization is still not particularly high. If anything Chinese cities still have room to grow further.
But the property price hikes were unsustainable and companies like Evergrande were leveraging their property business into all sorts of weird side investments to raise capital. Like they were making their own EV company. That bubble had to pop.
Hopefully the construction business will get more rational.

Evergrande is now shifting away from property development, into EV making in a big way. Their EV factories are ready. They just need to start making EVs.

 

[siegecrossbow]

Evergrande is now shifting away from property development, into EV making in a big way. Their EV factories are ready. They just need to start making EVs.

I doubt that they'll make much headways. The EV market is saturated as is.

 

[Overbom]

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• Oct official manufacturing PMI at 49.2 vs 49.6 in Sept
• Oct official services PMI at 52.4 vs 53.2 in Sept
• Oct official composite PMI at 50.8 vs 51.7 in Sept

Contraction on manufacturing and slower growth

High prices for raw materials and the electricity problems have hurt factories

 

[Andy1974]

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Contraction on manufacturing and slower growth

High prices for raw materials and the electricity problems have hurt factories

China has chosen this path though. It is not a bad thing. It will lead to low raw material prices, low inflation and highly efficient markets.

 

[MrCrazyBoyRavi]

Evergrande is now shifting away from property development, into EV making in a big way. Their EV factories are ready. They just need to start making EVs.

Seriously. Why can’t companies stick to their gun & do what they are good at. Too many EV companies.

 

[Andy1974]

Seriously. Why can’t companies stick to their gun & do what they are good at. Too many EV companies.

Chinas new “little giants” all focus on the one thing they are good at.

 

[NiuBiDaRen]

Does anyone have access to Caixin Global? I'm trying to access these two articles but am having trouble.

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[Dolcevita]

Does anyone have access to Caixin Global? I'm trying to access these two articles but am having trouble.

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try

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[caudaceus]

ECB balance sheet is bigger than US Fed

Quick question what happens actually when your central bank balance sheet grows so big?

 

[Overbom]

Quick question what happens actually when your central bank balance sheet grows so big?

You get a zombie economy. With zombie companies.
It sucks productivity from the real economy

You basically become another Japan