Chinese Economics Thread

[BlackWindMnt]

Gigantic deal. Lots of money for the US on this.

Global Times frames this deal in terms of "clear progress for phase 1 deal".

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Lol. The US literally just stole from Australian exports to China

Haha just as I though the US is claiming all of the NATO nations market access to the Chinese market.
Because a lot of westerners are Sinophobic they will gladly convince non Americans that this is the way to go.

 

[Overbom]

Haha just as I though the US is claiming all of the NATO nations market access to the Chinese market.
Because a lot of westerners are Sinophobic they will gladly convince non Americans that this is the way to go.

I have to admit. I am quite envious on the privileges of being a hegemon. What a great position to be. With just a single order you steal dozens of billions of dollars of exports from another country, amazing

The US is such a caring farmer. It truly cares for its crops

 

[Xizor]

Gigantic deal. Lots of money for the US on this.

Global Times frames this deal in terms of "clear progress for phase 1 deal".

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Lol. The US literally just stole from Australian exports to China

As long as US keeps importing Chinese goods. The trade deficit is only growing (in favor of China) and the Dems must have something to show.

 

[DarkStar]

I have to admit. I am quite envious on the privileges of being a hegemon. What a great position to be. With just a single order you steal dozens of billions of dollars of exports from another country, amazing

The US is such a caring farmer. It truly cares for its crops

The Five Eyes are a racial collective; australia may as well be medieval serfs for all intents and purposes.

 

[Tyler]

As long as US keeps importing Chinese goods. The trade deficit is only growing (in favor of China) and the Dems must have something to show.

Just hike the rmb and profit even more from these yankees.

 

[Godzilla]

https://twitter.com/i/web/status/1455882592578727944

i was wondering who they were selling it to. you all do realize that both these terminals aren't running yet right? with 1 basically not yet started construction....

 

[gelgoog]

i was wondering who they were selling it to. you all do realize that both these terminals aren't running yet right? with 1 basically not yet started construction....

That is typical US "entrepreneur" spirit though. Selling hopes and dreams. Snake oil salesmen.

 

[Overbom]

Harsh title but not a lie

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On paper, Kaisa looked great. In June, the developer passed the so-called “three red lines,” — the accounting metrics Beijing looks at to decide who gets to borrow. It even managed to issue a 300 million yuan ($46.9 million), 7% coupon bond in the mainland, a remarkable break It’s not hard to see why investors loved Kaisa.

But, as we are finding out, Kaisa may have passed the three red lines because it had shoveled a lot of financing off its books.

Fraud

Kaisa certainly hadn’t been forthcoming, telling investors it had no wealth management business, according to an Oct. 19 report on Debtwire.

Fraud x2

Nor was there a hint of such products in its annual reports. The admission of missed payments is, thus, the most unpleasant of surprises for investors.

Fraud x3

By pushing developers to get on a credit diet since 2018, China only propelled them to go underground, into dark financial corners that Beijing itself is not familiar with. On the books, Kaisa’s dependence on bank loans has waned, from 34% in 2019 to only 27% as of June. Offshore investors have become Kaisa’s biggest lenders — and are now discovering how far the developer has gone over into the dark side.

To make matters worse, Kaisa is no exception. In the last few years, developers have been increasingly relying on accounting gimmicks, from the joint venture structure that postpones reporting debt to off-balance-sheet financing vehicles. None of these show up in financial statements.

Fraud everywhere

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Companies that stayed green were supposed to be safer investments — with cleaner financials and on the government’s good side. Kaisa proved otherwise. It shows that simplistic official doctrines are rubbish;

Harsh but not far from the truth. There is too much fraud and corruption for policies to be effectively implemented.

Again, another example of how much inadequate the law and the enforcement mechanisms are regarding companies disclosing financial statements.

 

[NiuBiDaRen]

Harsh title but not a lie

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Fraud


Fraud x2


Fraud x3



Fraud everywhere

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Harsh but not far from the truth. There is too much fraud and corruption for policies to be effectively implemented.

Again, another example of how much inadequate the law and the enforcement mechanisms are regarding companies disclosing financial statements.

These are what I call growing pains. There will be more fraudulent companies as China races to developed country status. The key is to not let any company blow up the national economy.

I think I've mentioned before the key weakness of Chinese people is that some in their narrow mindedness step all over their fellow Chinese people.

 

[Overbom]

These are what I call growing pains. There will be more fraudulent companies as China races to developed country status. The key is to not let any company blow up the national economy.

I think I've mentioned before the key weakness of Chinese people is that some in their narrow mindedness step all over their fellow Chinese people.

The good thing is the ongoing anti-corruption investigation in the financial sector

However for long-term results, institutions needs to be set up, strengthened, and given the power to regulate without having to care about repercussions from investigating X or Y company which is close to Z local govornement or other officials.