What about when Western investors realise that Western economies are in big trouble due to the Ukrainian war and these sanctions.
I bet that many of them would love China for giving them growth opportunities.
Chinese Economics Thread
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I bet that many of them would love China for giving them growth opportunities.
Hello guys, I have a question if you can answer.
How is it possible for the Chinese CPI to be below 1% y/y according to the latest reading while the oil/gas prices and the majority of raw materials are increased over 50% y/y. Are they using a completely different formula than the other economies? CNY is appreciated a bit but still, the inflationary wave is enormous, it doesn't makes sense.
(well, actually this question applies also to other Asian economies like Japan but Japan is a dying economy so I am not that surprised).
How is it possible for the Chinese CPI to be below 1% y/y according to the latest reading while the oil/gas prices and the majority of raw materials are increased over 50% y/y. Are they using a completely different formula than the other economies? CNY is appreciated a bit but still, the inflationary wave is enormous, it doesn't makes sense.
(well, actually this question applies also to other Asian economies like Japan but Japan is a dying economy so I am not that surprised).
One thing is that a big component of Chinese CPI is the price of pork, which is absolutely crashing at the moment.
Largest China Tech ETF in U.S. Wipes Out Nine Years of Gains
The selloff in Chinese stocks has been so intense that it’s erased all the gains in the largest China tech exchange-traded fund in the U.S. since the debut in 2013.KraneShares CSI China Internet Fund (KWEB), a $4.9 billion ETF that invests in Chinese tech companies, slumped more than 11% Monday, bringing its decline over the past three days to 28%. Its loss this year has surpassed 42%, wiping out all the gains, including dividend payouts, since it started trading nine years ago.
U.S. and Chinese governments relentless assault on Chinese tech companies continues. I wouldn't be surprised if it went to zero at this point.
They are not tech companies. They are internet companies.
Yes they do some real R&D, but that's nothing in comparison to their main business segments.
Chinese state media has sent signals about this thing, years ago. If nobody was listening that's their own fault. Just pick up a random People's Daily newspaper from 3 years ago and the signals were all there.
There are many investors who thought that China didn't dare to do this or that it was just empty talk. As a result they are losing money now.
In any case, the Covid lockdown probably played a big role on why it plunged so much today
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The internet is a big part of technology. Why should Chinese people be disallowed from having thriving internet companies? Only Microsoft, Google, and Apple should rule the world?
Such loaded questions.
Also it's not just internet. China's gaming sectors have been devastated. Its EdTech has been devastated. Pretty much anything related to Chinese technology is being destroyed bit by bit, and if it's not China's government it's the US. Meanwhile the State Council keeps talking about supporting "R&D" and "innovation" but where are the actual policies? In the headlines all you see are new fines, bans, and regulations, and other crackdowns. Keep in mind that China has yet to enact a major fine on a single large Western tech company. The likes of Microsoft are still monopolizing the Chinese operating system market getting away scot-free. Apple runs a closed system and charges its Chinese app developers an arm and a leg, but apparently that's OK although Tencent's closed system is not OK. So because Microsoft and Apple are US companies Chinese anti-trust policies don't apply to it? This is like the unequal treaties of the 19th century lol.
Right now if you're Chinese and want to succeed in technology, Singapore is probably your best bet. The Southeast Asian market is about 670 million, which is bigger than the EU. So it's not bad. Also the demographics are a little better than China's.
[citation needed]