Chinese Economics Thread

broadsword

Brigadier
In the many stock markets, the systems are never truly fair to all. They tend to favor the big institutions with their trading systems and rules and regulations. But I am not in a position to go into the details. The reason is the same as to why Obama rescued the Wall Street boys, so you get the drift.

Outside of the established system, you have individuals and organizations that try to take advantage of its weaknesses and loopholes, either legally or otherwise. You can be sure the moment the name Muddy Waters is attached to a counter, panic selling sets in. Theoretically, there is nothing an exchange can do and so most exchanges can just watch it fall like crazy. What Soros did to the Asian economies was legal too, but millions of Asians suffered.

That is why it is a commendable that an exchange or a government steps in to take things into its own hands to prevent manipulation so that the common folks do no suffer unduly. Only a week ago, some pundits were saying the Shanghai Index was behaving like Dow Jones in 1929, showing the chart patterns as proof. And others were saying any intervention will ultimately fail. They remind me of the same behavior during the Asian crisis, trying to talk down the market.

Different strokes for different folks and China will do what is best for themselves, but in an infrequent way.
 

SampanViking

The Capitalist
Staff member
Super Moderator
VIP Professional
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Two key undercurrents are I think exposed in this episode.
1) That Chinese Financial Markets are still in the process of maturing and acquiring the general level of sophistication that exist on established global bourses.
2) China in this matter as in so many others is not prepared to accept rules designed for the primary benefit of the rules writer, but will write rules for itself in these matters.

I very much suspect that 2) is the reason that the Chinese markets have become a target for aggressive speculation, seeking to exploit the lack of maturity as per 1)

Even at the depth of the fall, the Chinese markets were still up 100% on July 2014, so it is hardly a disaster of unspeakable magnitude. It also seems that if this volatilty has been stirred up to create such panic that Bejing would accept the rules of others at its Bourses, then so far it would be a failure.
If there was an other objective, then we will still need to wait and see.

One easy test for whether rubbish is being uttered by the media on such Chinese subjects is when you hear commentators try to conflate with political stability and wheel out the old 7% growth gag.
This of course id the "If the Chinese economy stalls and growth falls to below 7%pa, then there is a very real risk of social disorder and a prospect of an uprising against the party"

For the record this comes from a quote from Kissenger at the very beginning of Deng's reforms over thirty years ago. His comment was that unless China could maintain an average of 7% GDP growth during the transitional/reform period, then there was a risk that workers being systematically laid off by SOE's would not be aborbed by new private industry quickly enough to prevent eventual significant long term unemployment and resultant unrest.
That was of course over thirty years ago, the main transition phase has long since been completed and growth throughout much of that time in double digits.
China has therefore put considerable "growth in hand" to hedge against any slowdown and today the biggest labour issue is more related to a shortage of it, rather than unemployment.

So next time you hear a commentator mention the 7% gag during a supposedly serious item on the Chinese economy, that they are either idiots or being wilfully disingenuous.
 

Ultra

Junior Member
The saying goes "bulls make money, bears make money, pigs get slaughtered," and the little guys are often pigs. However, in the recent Shanghai stock crash, it seems the well-off took most of the loses.

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How is US funds going to bail out China? LOL!?
Isn't China the largest creditor of US debts?




The odd thing about China is it's an outlier on many conventional social-economic wisdom. Some examples:

Conventional Wisdom- centralized planning produces too much inefficiencies and retards national growth.
Empirical Evidence- using centralized planning for 30 years, China produced the fastest sustained economic growth in human history.

Conventional Wisdom- single party rule produces too much corruption, which depress economic development, and impoverish the masses.
Empirical Evidence- corruption rose over three decades to heights not seen since the worst of Qing Empire, but China got richer and richer and not poorer and poorer.

Conventional Wisdom- authoritarian governments oppresses its citizens and cause widespread resentment against the elites.
Empirical Evidence- a poll by Harvard University showed Beijing enjoys >70% popular support; provincial governments about 60% support, county and local 45%-55% support.

Conventional Wisdom- as nations become more wealthy and produce sizable middle class, they'd want democracy.
Empirical Evidence- the CCP has done well co-opting the rising middle class by developing feedback systems to detect major grievances and address them before they get out of control.


All of these can be explained by looking at Singapore.
China is basically following the rule book of Lee Kuan Yew to the dot.


Lee Kuan Yew: The Father of Modern China?
Lee Kuan Yew’s influence helped shape the China we know today.


With the passing of Lee Kuan Yew, Singapore’s first prime minister and one of the most influential Asian politicians, leaders and media outlets all over the world have put in their two cents on his legacy. In the Western world, analysis of his influence is generally mixed; the Washington Post, for example,
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by calling Lee “the democratic world’s favorite dictator.” But in China, where Lee’s mix of authoritarian governance and economic reform proved hugely influential, reflections are far more glowing.

China’s Foreign Ministry
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on March 23 saying that “the Chinese side deeply mourns the loss of Mr. Lee Kuan Yew.” The statement praised Lee as “a uniquely influential statesman in Asia and a strategist embodying oriental values and international vision.”

For China, that high praise might actually be underestimating Lee’s importance. After the death of Mao Zedong, Beijing’s leaders knew that Maoist philosophy was not the way forward for China – but they were loath to adopt Western alternatives such as democracy and a free market economy. In Lee’s Singapore, Chinese leaders found an alternative path, a path they could sell as being uniquely suited for Asian (or “oriental,” as China’s FM put it) values. That choice, to combine economic reforms with authoritarianism, shaped China as we know it today.

Jin Canrong of Renmin University
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that Lee’s greatest contribution to China was “sharing Singapore’s successful experience in governance.” In his biography of Deng Xiaoping, Ezra Vogel wrote that China’s great reformed was inspired by the example of Lee’s Singapore. Xi Jinping himself has said that China’s modernization process has been undeniably shaped by the “tens of thousands of Chinese officials” who went to Singapore to study Lee’s model. Lee himself visited China over 30 times and met with Chinese leaders from Mao to Xi Jinping, offering advice.

Perhaps Lee’s greatest legacy for China was inspiring not simply Deng’s economic reforms, but the very idea that reform and adaptation is a never-ending, essential process. As Lee put it in a 2007 interview
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,
Singapore embraces practicality rather than ideology: “Does it work? If it works, let’s try it. If it’s fine, let’s continue it. If it doesn’t work, toss it out, try another one.” That pragmatic stance is echoed in Deng Xiaoping’s famous statement that “it doesn’t matter whether a cat is black or white, as long as it catches mice.”

Lee’s embrace of experimental reform is alive and well today in Xi and company’s emphasis on “comprehensively deepening reform.” In particular, China hopes to follow in the one area where its reforms veered away from Lee’s model – Singapore is known as one of the least corrupt countries in the world, while corruption in China has grown so great that leaders see it as an existential threat to Party rule. Legal analysts
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say the Singaporean model is providing a blueprint for legal reforms in China today.

However, in their zeal for practical reforms, both Lee and China kept to one baseline – the idea that democracy (at least as defined by the West) is incompatible with ‘Asian values.’ Lee’s
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that China would “collapse” if it became a liberal democracy echoes similar themes popular among Chinese officials and state-run media.

Given Lee’s influence on China, it’s no wonder that Western leaders turned to him for advice on how to deal with Beijing. From Henry Kissinger to Tony Blair, Lee advised politicians for decades. Scholars even recently gathered together Lee’s advice for how to navigate the turbulent period as China becomes a peer competitor with the U.S., creating the book
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(published just two years ago).

Lee
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that China’s rise would necessitate a shift in the international order. “It’s not possible to pretend that [China] is just another big player,” Lee
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“This is the biggest player in the history of man.” Such language delighted leaders in Beijing eager to believe in the unique power of China’s history and culture and the inevitability of China’s rise. For years, Chinese leaders trusted Lee to explain their country. As
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, “When China encountered resistance in the international arena, Lee played an important role in mediating and interpreting for China.”

To observers in the West, Lee’s words now seem prescient – one wonders how history might have changed if Washington, for example, had taken Lee’s advice to heart 20 years ago. With Lee gone, both China and the West will have to figure out how to deal with each other without his guidance.

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I don't believe corruption is good for any country nor do I believe single-party rule is good (I live in a single-party State, and I want it voted out of power), but I think China is opposite on so many generally accepted wisdom, it behooves the rest of the world to take a closer look and see what is so different about the Middle Kingdom.




Nobody will deny corruption is bad (unless you are the one doing it or benefit from it! :D)

But single party state? I beg to differ. I have ask this question to great many of my singaporean friends, and all of them don't think it is a problem, in fact they think it is great, it has kept Singapore one of the high standard of living, efficient, advanced country in the world (their words not mine).

I have read an article which seems to echo the same thing in Saudi Arabia and Dubai, where they are essentially single party state, no democracy, but most citizens are happy there because of high standard of living that government provided.

To most people, the function of the government is to provide security and stability for one to thrive in. Democracy is often incompatible with the above two - you only have to look at Philippine, Thailand, and many other democratic fail states. Of course it doesn't mean all single party dictatorship are not fail state, far from it - North Korea being one prime example. But when single party authoritarian system works, it often works very well - recent example includes most of the 4 asian tigers - Taiwan, South Korea, Singapore, and even today, Vietnam is a rising economic powerhouse even though it is a single party authoritarian state very much like China.
 

Franklin

Captain
The reason for this stock market crash is simple. It has gone up way too much in the past year and even with the recent declines, it's still at April level, so could go down a lot more. The growth in economy simply dictates that such rise in stock market is completely unreasonable and need correction. The problem is that the stock market like the housing market functions like a really big casino in China. Over 30% of investors have not completed secondary education and I think a fair chunk of that are illiterate. People are literally investing on the margins, because they see other people doing it and making money. A lot of this gets superstitious rather than based on sound investment. And of course, the recent Chinese gov't actions of allowing people to mortgage their home to put more money in stock market is completely nuts.

None of this obviously is indication of the real Chinese economy. But of course, if people loose a lot of money on the stock market, they will also spend less in the real economy, so it could have longer term affect.

Remember, there were even bigger crashes a few years ago when it dropped 70%. The real issue is that Chinese economy has too much debt and is overly leveraged. The deleveraging will be painful, but is needed. Japan never learned to deleverage all of this years, that's why it's seen 25 years of weak growth. The worst China could do is to follow Japan's path and do the same.


While not all of your comment here is unfounded. This post does follow a consistent pattern of negative posting against China which I think is getting tiresome.
Its not so much that the Chinese government don't understand or won't deleverage is just that they want to deleverage on their own pace and in their own way. They are willing to have bankruptcies but not too many or too big. They are willing to allow the economy to slow but only up to a point. The same goes for the housing market. They are willing to allow sales to slow and prices to fall but only up to a point. They understand that there is too much debt and that they need to pull back. But they also want to maintain a certain level of growth while doing that. Its like walking a tight rope. Would they succeed ? I don't know. I think what is going to happen in the stock market that is in the short run they will keep the emergency measures in place but in the long run the government will try to let the air out of the bubble in a "controlled manner" if thats possible. They know stock prices are too high and need to fall but they don't want it to happen too rapidly and in a out of control fashion. In the weeks and months ahead we shall see what they will do.

If you look at the housing market. There are now fewer new projects and the prices are flat and is no longer rising like crazy. While the wages of the people are continueing to rise. But as prices fall over the past year the government has once again introduce stimulus measures to help the real estate market. And prices are slowly increasing again.

For me its difficult to call rather China will go down in flames or will come out on top. Because despite the problems mentioned before. The Chinese economy does have a lot of legitimate growth. Like better infrastructure, better educated population, China has invested heavily in human development and science and technology. So the economy is rapidly moving up the value chain both in terms of production and services. And they are doing so on a broad bases. That means millions of well paying jobs are created each year. And that is helping to create a middle class/consumer class within. And what ever happens in the stock markets it won't effect that process for now.

As for the current situation. Lets hope that only a small portion of the 90 million stock investers have been so irresponsible that they put their life savings into it and then borrowed some.
 

Ultra

Junior Member
I have speculated that the Chinese stock market crash may be intentional....
Since China has one of the largest reserve in the world, couple with extremely high saving rate with most of the banks being control by the state (not to mention few billion savers...), it means the chinese government basically has ALL THE CARDS to play with.

One thing I have noticed is that for the past year or so, the Chinese goods has risen to the point of costing almost the same or even more expensive than US/Japanese/European brands. The Japanese has intensionally devalue their currency to make their product competitive, while the american may have intentionally depressed their economy to make their product more competitive - and this time it is Chinese government who may be trying the same thing. Of course depressing the economy may be a pain - but in the longer run, it makes it more benefitial - for one it will keep the labour cost down and keep companies staying in China (to stop the capital flight). As China's economy slows down and depress, it will devalue its currency as well, as well as its product which will become much cheaper and making it more competitive in the global market.

The downside to this of course is the "brain drain" it will be creating - as smart, intelligent, capable people will be chasing after better paid jobs, a depressed economy means they will simply look for better jobs in other countries - creating the brain drain in their home country. The Chinese government will have to walk a very fine line to mitigate this huge problem, as China needs these people to progress in the 21st century, so government support at funding and retaining the smart people in a depressed economy will be a priority.
 

nugroho

Junior Member
because fundamentally an artificial environment is unsustainable

Who build the artificial environment for the market ? China's goverment ?
If you ever think that China government made an artificial environment to lift the market upside, then how about " big brokerages want to buy in lower prices then spreading the fear among the market so they can buy in nose dive market " idea?
Stock market always up and down.
As you said the winner is fundamental, I absolutely agree. But what is good fundamental and bad ones? The criterias differs significantly across the market.
PE ratio? , Ebitda? , PBV?, NPL? and tons of ratios.
Buying stocks for me is buying the future, not buying the past. Almost all fundamental ratio came from past , you wont have real fundamental ratio for future, all are only analysis and predictions.
China will grow 7% or at least 6,5 %, it is a very high growth rate for big size economy, I think you agree with me about this., So what is the bad fundamental for China?
 

delft

Brigadier
How is US funds going to bail out China? LOL!?
Isn't China the largest creditor of US debts?







All of these can be explained by looking at Singapore.
China is basically following the rule book of Lee Kuan Yew to the dot.


Lee Kuan Yew: The Father of Modern China?
Lee Kuan Yew’s influence helped shape the China we know today.


With the passing of Lee Kuan Yew, Singapore’s first prime minister and one of the most influential Asian politicians, leaders and media outlets all over the world have put in their two cents on his legacy. In the Western world, analysis of his influence is generally mixed; the Washington Post, for example,
Please, Log in or Register to view URLs content!
by calling Lee “the democratic world’s favorite dictator.” But in China, where Lee’s mix of authoritarian governance and economic reform proved hugely influential, reflections are far more glowing.

China’s Foreign Ministry
Please, Log in or Register to view URLs content!
on March 23 saying that “the Chinese side deeply mourns the loss of Mr. Lee Kuan Yew.” The statement praised Lee as “a uniquely influential statesman in Asia and a strategist embodying oriental values and international vision.”

For China, that high praise might actually be underestimating Lee’s importance. After the death of Mao Zedong, Beijing’s leaders knew that Maoist philosophy was not the way forward for China – but they were loath to adopt Western alternatives such as democracy and a free market economy. In Lee’s Singapore, Chinese leaders found an alternative path, a path they could sell as being uniquely suited for Asian (or “oriental,” as China’s FM put it) values. That choice, to combine economic reforms with authoritarianism, shaped China as we know it today.

Jin Canrong of Renmin University
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that Lee’s greatest contribution to China was “sharing Singapore’s successful experience in governance.” In his biography of Deng Xiaoping, Ezra Vogel wrote that China’s great reformed was inspired by the example of Lee’s Singapore. Xi Jinping himself has said that China’s modernization process has been undeniably shaped by the “tens of thousands of Chinese officials” who went to Singapore to study Lee’s model. Lee himself visited China over 30 times and met with Chinese leaders from Mao to Xi Jinping, offering advice.

Perhaps Lee’s greatest legacy for China was inspiring not simply Deng’s economic reforms, but the very idea that reform and adaptation is a never-ending, essential process. As Lee put it in a 2007 interview
Please, Log in or Register to view URLs content!
Please, Log in or Register to view URLs content!
,
Singapore embraces practicality rather than ideology: “Does it work? If it works, let’s try it. If it’s fine, let’s continue it. If it doesn’t work, toss it out, try another one.” That pragmatic stance is echoed in Deng Xiaoping’s famous statement that “it doesn’t matter whether a cat is black or white, as long as it catches mice.”

Lee’s embrace of experimental reform is alive and well today in Xi and company’s emphasis on “comprehensively deepening reform.” In particular, China hopes to follow in the one area where its reforms veered away from Lee’s model – Singapore is known as one of the least corrupt countries in the world, while corruption in China has grown so great that leaders see it as an existential threat to Party rule. Legal analysts
Please, Log in or Register to view URLs content!
say the Singaporean model is providing a blueprint for legal reforms in China today.

However, in their zeal for practical reforms, both Lee and China kept to one baseline – the idea that democracy (at least as defined by the West) is incompatible with ‘Asian values.’ Lee’s
Please, Log in or Register to view URLs content!
that China would “collapse” if it became a liberal democracy echoes similar themes popular among Chinese officials and state-run media.

Given Lee’s influence on China, it’s no wonder that Western leaders turned to him for advice on how to deal with Beijing. From Henry Kissinger to Tony Blair, Lee advised politicians for decades. Scholars even recently gathered together Lee’s advice for how to navigate the turbulent period as China becomes a peer competitor with the U.S., creating the book
Please, Log in or Register to view URLs content!
(published just two years ago).

Lee
Please, Log in or Register to view URLs content!
that China’s rise would necessitate a shift in the international order. “It’s not possible to pretend that [China] is just another big player,” Lee
Please, Log in or Register to view URLs content!
“This is the biggest player in the history of man.” Such language delighted leaders in Beijing eager to believe in the unique power of China’s history and culture and the inevitability of China’s rise. For years, Chinese leaders trusted Lee to explain their country. As
Please, Log in or Register to view URLs content!
Please, Log in or Register to view URLs content!
, “When China encountered resistance in the international arena, Lee played an important role in mediating and interpreting for China.”

To observers in the West, Lee’s words now seem prescient – one wonders how history might have changed if Washington, for example, had taken Lee’s advice to heart 20 years ago. With Lee gone, both China and the West will have to figure out how to deal with each other without his guidance.

Please, Log in or Register to view URLs content!









Nobody will deny corruption is bad (unless you are the one doing it or benefit from it! :D)

But single party state? I beg to differ. I have ask this question to great many of my singaporean friends, and all of them don't think it is a problem, in fact they think it is great, it has kept Singapore one of the high standard of living, efficient, advanced country in the world (their words not mine).

I have read an article which seems to echo the same thing in Saudi Arabia and Dubai, where they are essentially single party state, no democracy, but most citizens are happy there because of high standard of living that government provided.

To most people, the function of the government is to provide security and stability for one to thrive in. Democracy is often incompatible with the above two - you only have to look at Philippine, Thailand, and many other democratic fail states. Of course it doesn't mean all single party dictatorship are not fail state, far from it - North Korea being one prime example. But when single party authoritarian system works, it often works very well - recent example includes most of the 4 asian tigers - Taiwan, South Korea, Singapore, and even today, Vietnam is a rising economic powerhouse even though it is a single party authoritarian state very much like China.
Western democracy is highly overrated. The Greek drama shows that membership of EU is not compatible with more than a shadow of democracy. And remember that the famous American writer Gore Vidal said that the Democratic and Republican parties are the left and right wing of the American Capitalist Party.
 

Equation

Lieutenant General
Looks like a second day in the row of stock rising in China. Where are my naysayers and doubters at?:D I bet by tomorrow morning the Dow Jones and Wall Street will rise as well from this good news.o_O

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Told ya...US stocks are up and you don't see any news crediting China for it because that would be sacrilegious to credit the CPC for helping the stock market world wide back in stability mode. :rolleyes::)
 

tphuang

Lieutenant General
Staff member
Super Moderator
VIP Professional
Registered Member
Here since everyone is just beating around the bushes with someone saying that the little people will not get hurt. Here is an article that discribes what really pulled the triger.

I am not pluck anything out of thin air. I have been following it and looking at the mechanism which is written above. The PRC government relaxed various regulations that triggered an artifical rise in the stock market resulting to a stock bubble that had burst. Like I said it is going to spill over to other investment schemes especially the shadow banking system that borrow money directly from individuals placing higher interests then normal banking.
The problem is that you are only looking for articles that support your views and not looking at the entire pictures. I have not seen you post any positive about China in all of your time here. We don't ask people to be pro-China on this forum, just that you be open minded and not only focus on the negative.

In contrary, in 6 months time, most likely will rebound, so it could be better for them
I knew the crash in China would happen, the question is how bad?. I don't think it will be like Japan which has lost more than 2 decades (Lost Two Decades), far from it.
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Japan lost 2 decades any more because it continually tries to reflate itself and build up more debt. If anything, Japan is the biggest sign of caution for China since it was also sailing along with no end in sight for the good times and founded on a very machine export economy dependent on natural resources. And since it crashed, it has only kept a policy of 0 percent interest rate and increase gov't spending which has prevented the full crash from happening.

Dr. Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy under President Reagan.
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withkitties_150_120.jpg

Dr. Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. Roberts' latest books are
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and
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.

I knew naked short selling had to do with it. :)
hmm, no. No banks are stupid enough to naked short a huge quantity. When they short on market, they would long in another market to hedge the risks. And it's hard to spot where they are hedging a lot of times. They could be buying gold in the cash market from retail investors. They could be buying gold in european market. These stuff is not visible to outsiders. So if they only look at a bank's activity on CME, then they might think that bank is shorting a lot when it's not the case. And frankly, risk monitoring department in the major financial institutions would go crazy if any bank is shorting to the amount they are. If you are just shorting gold, you still have to deliver. Where are they getting this gold if they don't buy it in the first place?

And i'm saying this as someone who has consistently held long gold positions.

Its not so much that the Chinese government don't understand or won't deleverage is just that they want to deleverage on their own pace and in their own way. They are willing to have bankruptcies but not too many or too big. They are willing to allow the economy to slow but only up to a point. The same goes for the housing market. They are willing to allow sales to slow and prices to fall but only up to a point. They understand that there is too much debt and that they need to pull back. But they also want to maintain a certain level of growth while doing that. Its like walking a tight rope. Would they succeed ? I don't know. I think what is going to happen in the stock market that is in the short run they will keep the emergency measures in place but in the long run the government will try to let the air out of the bubble in a "controlled manner" if thats possible. They know stock prices are too high and need to fall but they don't want it to happen too rapidly and in a out of control fashion. In the weeks and months ahead we shall see what they will do.

If you look at the housing market. There are now fewer new projects and the prices are flat and is no longer rising like crazy. While the wages of the people are continueing to rise. But as prices fall over the past year the government has once again introduce stimulus measures to help the real estate market. And prices are slowly increasing again.

For me its difficult to call rather China will go down in flames or will come out on top. Because despite the problems mentioned before. The Chinese economy does have a lot of legitimate growth. Like better infrastructure, better educated population, China has invested heavily in human development and science and technology. So the economy is rapidly moving up the value chain both in terms of production and services. And they are doing so on a broad bases. That means millions of well paying jobs are created each year. And that is helping to create a middle class/consumer class within. And what ever happens in the stock markets it won't effect that process for now.

As for the current situation. Lets hope that only a small portion of the 90 million stock investers have been so irresponsible that they put their life savings into it and then borrowed some.

Nobody wants a large crash, but want a "managed crash". Like any central bank can control that. you have to allow painful deleveraging. This happend in 1997 and 1998 in China and there were huge riots and crime rate sky rocketed in China but eventually it got rid of the inefficient SOEs. Now, the problems are even larger. So they have to suffer several years of pain. You have to let these inefficient and wasteful heavy industries like steel factories that are polluting the country go under. Just think about it, if even 5 ro 6 % growth is a problem in China, what if the growth shrinks to 2 to 3%?

On the bright side, China's CO2 emissions went down last year for the first time in many years. It's unlikely to go up this year if the manufacturing economy isn't overheating.
 

no_name

Colonel
China will grow 7% or at least 6,5 %, it is a very high growth rate for big size economy,

The Chinese economy has been growing at pretty good rates for the last three decades. This implies that there must be many companies/industries that is growing just as good consistently over same period of time. I wonder if anyone made the right long term investment choice and took off along with China's economy these past couple of decades. The short term may fluctuate but the long term trend will go up for a quite while, why, simply because Chinese economy is growing at 6.5%, 7% annually and it'll be impossible if many companies are not growing at the same rate if not faster in the long term.

I'm thinking that what really made Warren Buffet took off is simply that he made long term investments during the US' economic growth phase. If the economy grows well overtime so will the majority of the stocks.

Is there a Chinese Warren Buffett somewhere? Maybe he wants to keep low key and laugh to the banks?
 
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