Chinese Economics Thread
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Chinese government economic policies were criticized at a high level economic conference attended by Liu He.
What do you think of this? Do you think that china´s state sector is crowding out the private sector? And what will be the consequences for china´s produtivity and economic efficiency, not to mention the trade war?
What do you think of this? Do you think that china´s state sector is crowding out the private sector? And what will be the consequences for china´s produtivity and economic efficiency, not to mention the trade war?
Hendrik_2000
Lieutenant General
Chinese academic are trained in the west and they worshiped the west as god. But they have no connection to the grass root Recently China did open wider the access to credit for small company. But basically small company rely on self financing. Year after year the share of private company in Chinese economy keep increasing now is probably close to 70%
So I take it with alot of grain salt anything the Chinese academic said They can discuss and criticizes but I read for decades and none of their criticism is valid
China's private sector contributes greatly to economic growth: federation leader
Source: Xinhua| 2018-03-06 18:44:52|Editor: Mengjie
BEIJING, March 6 (Xinhua) -- China's private sector has made an important contribution to economic growth, head of the country's industry and commerce federation said Tuesday.
The sector now contributes more than 60 percent of China's GDP growth and brings in over half of China's fiscal revenue, according to Gao Yunlong, head of the All-China Federation of Industry and Commerce.
Meanwhile, more than 60 percent of China's fixed-asset investment and outbound investment has been made by private investors, Gao told a press conference on the sidelines of the first session of the 13th National Committee of the Chinese People's Political Consultative Conference.
The private economy is also playing a stronger role in China's job creation and innovation drive by providing over 80 percent of jobs and contributing more than 70 percent of technological innovation and new products in the country, according to Gao.
He said that last year, more than 90 percent of new jobs were created by private businesses.
At the end of 2017, there were 65.79 million individually-owned businesses and 27.26 million private enterprises in China, which employed some 340 million people.
China's private investment grew 6 percent year on year, 2.8 percentage points higher than a year earlier, to 38.2 trillion yuan (about 6 trillion U.S. dollars) last year, according to official data.
Hendrik_2000
Lieutenant General
see the smaller city still has oomp
Crazy Rich Asians Are So Yesterday in China
An army of blue-collar workers are the new little big spenders.
By
September 19, 2018, 5:00 PM CDT
Pinduoduo users celebrate the Nasdaq listing at an event in Shanghai. Photographer: ShenShi/Visual China Group/Getty Images
There’s a new breed of spender in charge of China’s wallets, and it’s not crazy rich Asians.
The rise of Pinduoduo Inc. and the decline of JD.com Inc. are good proxies for this shift. Founded three years ago, the e-commerce site Pinduoduo processed 262 billion yuan ($38.3 billion) of transactions in the second quarter, just 40 percent shy of JD’s gross merchandise volume. The smaller company now has more annual active users than JD, China’s second-largest e-commerce provider with .
Rising Star
Three-year-old Pinduoduo is racing to catch up with JD.com
Source: Company filings
Note: Shows gross merchandise volume.
The startup raised $1.6 billion in a New York IPO in July and now has a $25 billion market cap. JD has dropped 38 percent this year to a value of $37 billion. (More than half of the decline was attributable to operations, the rest reflecting the arrest of CEO Richard Liu in a U.S. sexual-misconduct case.)
Whereas JD’s value proposition is quality and authenticity, Pinduoduo, a Groupon-like app with social-media features, is all about good deals. Every item listed on the site, whose name translates as “combined abundance,” has an official price and a discounted price. A consumer can get the discount by persuading a friend to make the same purchase.
Their target demographics are very different. While JD appeals to the middle classes in wealthy cities like Shanghai and Beijing, Pinduoduo serves less well-off consumers in smaller cities. Last year, cities classed as Tier 3 and lower accounted for almost 60 percent of China’s total retail sales.
Not-So-Poor Relations
Unlike JD.com, Pinduoduo serves mainly people in smaller cities
Source: Smartkarma
And people in smaller cities have more money to spend these days, at a time when the metropolitan middle classes are feeling .
Household debt (mostly mortgages) has almost doubled as a percentage of China’s GDP since the financial crisis — and tougher luck still if you don’t own your home. Rents in Beijing in the past year. Every time I visit my hometown, Shanghai, I find that eating out costs more than in Hong Kong, where I’m based. Meanwhile, middle-class investment portfolios can’t be looking pretty with the nation’s stock market in solid bear territory and Tier 1 cities on property sales by imposing a freeze on resales of apartments, among other things.
Want more evidence? Retail sales growth in Beijing and Shanghai has slowed more dramatically than the national average.
Steeper Slowdown
Retail sales growth in megacities such as Shanghai and Beijing slowed down more than the national average
Source: Bloomberg
In the smaller cities, meanwhile, people are feeling a lot richer, helped by Beijing’s subsidies to redevelop shanty towns. Last year, backed by funding from the central bank, China Development Bank alone 880 billion yuan for such projects. As much as 60 percent of that money went straight to households as cash settlements.
And don’t dismiss the spending power of the millions of couriers, mostly blue-collar migrants from China’s interior, who deliver parcels and food for the internet giants. Their monthly salaries — anecdotally, between and — are a fortune compared with incomes in the countryside. Many remit money home.
This blue-collar army is more likely to buy a 200-yuan “authentic Guqi” Chinese-made sling bag on Pinduoduo than to spend 14,000 yuan for the Gucci equivalent on JD. With government handouts and savings from their city salaries, they’re buying new apartments in Tier 3 and 4 cities. CLSA estimates that shanty-town subsidies accounted for 17 percent of property sales in such cities last year, while feeding only 3 percent of retail sales.
In other words, people in lower-tier cities upgrade their housing and bargain-hunt for everything else. After delivering packages in the rain and cold for 14 hours a day they want the convenience of shopping from home without the cost of a high-end e-commerce site.
There’s one big danger, however, in following the theme of rising small cities.
Shanty-town cash settlements are essentially helicopter money from the People’s Bank of China to underdeveloped areas, and there is evidence that this flow is slowing. Pledged supplemental lending, routed via the policy banks to fund these projects, dwindled to an 18-month low in August.
Helicopter Down?
Pledged supplemental lending by the People's Bank of China, mostly used for shanty town redevelopment projects, is dwindling
Source: Bloomberg
Crazy Rich Asians Are So Yesterday in China
An army of blue-collar workers are the new little big spenders.
By
September 19, 2018, 5:00 PM CDT
Pinduoduo users celebrate the Nasdaq listing at an event in Shanghai. Photographer: ShenShi/Visual China Group/Getty Images
There’s a new breed of spender in charge of China’s wallets, and it’s not crazy rich Asians.
The rise of Pinduoduo Inc. and the decline of JD.com Inc. are good proxies for this shift. Founded three years ago, the e-commerce site Pinduoduo processed 262 billion yuan ($38.3 billion) of transactions in the second quarter, just 40 percent shy of JD’s gross merchandise volume. The smaller company now has more annual active users than JD, China’s second-largest e-commerce provider with .
Rising Star
Three-year-old Pinduoduo is racing to catch up with JD.com
Source: Company filings
Note: Shows gross merchandise volume.
The startup raised $1.6 billion in a New York IPO in July and now has a $25 billion market cap. JD has dropped 38 percent this year to a value of $37 billion. (More than half of the decline was attributable to operations, the rest reflecting the arrest of CEO Richard Liu in a U.S. sexual-misconduct case.)
Whereas JD’s value proposition is quality and authenticity, Pinduoduo, a Groupon-like app with social-media features, is all about good deals. Every item listed on the site, whose name translates as “combined abundance,” has an official price and a discounted price. A consumer can get the discount by persuading a friend to make the same purchase.
Their target demographics are very different. While JD appeals to the middle classes in wealthy cities like Shanghai and Beijing, Pinduoduo serves less well-off consumers in smaller cities. Last year, cities classed as Tier 3 and lower accounted for almost 60 percent of China’s total retail sales.
Not-So-Poor Relations
Unlike JD.com, Pinduoduo serves mainly people in smaller cities
Source: Smartkarma
And people in smaller cities have more money to spend these days, at a time when the metropolitan middle classes are feeling .
Household debt (mostly mortgages) has almost doubled as a percentage of China’s GDP since the financial crisis — and tougher luck still if you don’t own your home. Rents in Beijing in the past year. Every time I visit my hometown, Shanghai, I find that eating out costs more than in Hong Kong, where I’m based. Meanwhile, middle-class investment portfolios can’t be looking pretty with the nation’s stock market in solid bear territory and Tier 1 cities on property sales by imposing a freeze on resales of apartments, among other things.
Want more evidence? Retail sales growth in Beijing and Shanghai has slowed more dramatically than the national average.
Steeper Slowdown
Retail sales growth in megacities such as Shanghai and Beijing slowed down more than the national average
Source: Bloomberg
In the smaller cities, meanwhile, people are feeling a lot richer, helped by Beijing’s subsidies to redevelop shanty towns. Last year, backed by funding from the central bank, China Development Bank alone 880 billion yuan for such projects. As much as 60 percent of that money went straight to households as cash settlements.
And don’t dismiss the spending power of the millions of couriers, mostly blue-collar migrants from China’s interior, who deliver parcels and food for the internet giants. Their monthly salaries — anecdotally, between and — are a fortune compared with incomes in the countryside. Many remit money home.
This blue-collar army is more likely to buy a 200-yuan “authentic Guqi” Chinese-made sling bag on Pinduoduo than to spend 14,000 yuan for the Gucci equivalent on JD. With government handouts and savings from their city salaries, they’re buying new apartments in Tier 3 and 4 cities. CLSA estimates that shanty-town subsidies accounted for 17 percent of property sales in such cities last year, while feeding only 3 percent of retail sales.
In other words, people in lower-tier cities upgrade their housing and bargain-hunt for everything else. After delivering packages in the rain and cold for 14 hours a day they want the convenience of shopping from home without the cost of a high-end e-commerce site.
There’s one big danger, however, in following the theme of rising small cities.
Shanty-town cash settlements are essentially helicopter money from the People’s Bank of China to underdeveloped areas, and there is evidence that this flow is slowing. Pledged supplemental lending, routed via the policy banks to fund these projects, dwindled to an 18-month low in August.
Helicopter Down?
Pledged supplemental lending by the People's Bank of China, mostly used for shanty town redevelopment projects, is dwindling
Source: Bloomberg
see the smaller city still has oomp
Crazy Rich Asians Are So Yesterday in China
An army of blue-collar workers are the new little big spenders.
By
September 19, 2018, 5:00 PM CDT
Pinduoduo users celebrate the Nasdaq listing at an event in Shanghai. Photographer: ShenShi/Visual China Group/Getty Images
There’s a new breed of spender in charge of China’s wallets, and it’s not crazy rich Asians.
The rise of Pinduoduo Inc. and the decline of JD.com Inc. are good proxies for this shift. Founded three years ago, the e-commerce site Pinduoduo processed 262 billion yuan ($38.3 billion) of transactions in the second quarter, just 40 percent shy of JD’s gross merchandise volume. The smaller company now has more annual active users than JD, China’s second-largest e-commerce provider with .
Rising Star
Three-year-old Pinduoduo is racing to catch up with JD.com
View attachment 48920
Source: Company filings
Note: Shows gross merchandise volume.
The startup raised $1.6 billion in a New York IPO in July and now has a $25 billion market cap. JD has dropped 38 percent this year to a value of $37 billion. (More than half of the decline was attributable to operations, the rest reflecting the arrest of CEO Richard Liu in a U.S. sexual-misconduct case.)
Whereas JD’s value proposition is quality and authenticity, Pinduoduo, a Groupon-like app with social-media features, is all about good deals. Every item listed on the site, whose name translates as “combined abundance,” has an official price and a discounted price. A consumer can get the discount by persuading a friend to make the same purchase.
Their target demographics are very different. While JD appeals to the middle classes in wealthy cities like Shanghai and Beijing, Pinduoduo serves less well-off consumers in smaller cities. Last year, cities classed as Tier 3 and lower accounted for almost 60 percent of China’s total retail sales.
Not-So-Poor Relations
Unlike JD.com, Pinduoduo serves mainly people in smaller cities
View attachment 48921
Source: Smartkarma
And people in smaller cities have more money to spend these days, at a time when the metropolitan middle classes are feeling .
Household debt (mostly mortgages) has almost doubled as a percentage of China’s GDP since the financial crisis — and tougher luck still if you don’t own your home. Rents in Beijing in the past year. Every time I visit my hometown, Shanghai, I find that eating out costs more than in Hong Kong, where I’m based. Meanwhile, middle-class investment portfolios can’t be looking pretty with the nation’s stock market in solid bear territory and Tier 1 cities on property sales by imposing a freeze on resales of apartments, among other things.
Want more evidence? Retail sales growth in Beijing and Shanghai has slowed more dramatically than the national average.
Steeper Slowdown
Retail sales growth in megacities such as Shanghai and Beijing slowed down more than the national average
View attachment 48922
Source: Bloomberg
In the smaller cities, meanwhile, people are feeling a lot richer, helped by Beijing’s subsidies to redevelop shanty towns. Last year, backed by funding from the central bank, China Development Bank alone 880 billion yuan for such projects. As much as 60 percent of that money went straight to households as cash settlements.
And don’t dismiss the spending power of the millions of couriers, mostly blue-collar migrants from China’s interior, who deliver parcels and food for the internet giants. Their monthly salaries — anecdotally, between and — are a fortune compared with incomes in the countryside. Many remit money home.
This blue-collar army is more likely to buy a 200-yuan “authentic Guqi” Chinese-made sling bag on Pinduoduo than to spend 14,000 yuan for the Gucci equivalent on JD. With government handouts and savings from their city salaries, they’re buying new apartments in Tier 3 and 4 cities. CLSA estimates that shanty-town subsidies accounted for 17 percent of property sales in such cities last year, while feeding only 3 percent of retail sales.
In other words, people in lower-tier cities upgrade their housing and bargain-hunt for everything else. After delivering packages in the rain and cold for 14 hours a day they want the convenience of shopping from home without the cost of a high-end e-commerce site.
There’s one big danger, however, in following the theme of rising small cities.
Shanty-town cash settlements are essentially helicopter money from the People’s Bank of China to underdeveloped areas, and there is evidence that this flow is slowing. Pledged supplemental lending, routed via the policy banks to fund these projects, dwindled to an 18-month low in August.
Helicopter Down?
Pledged supplemental lending by the People's Bank of China, mostly used for shanty town redevelopment projects, is dwindling
Source: Bloomberg
This is not a good thing these people are consuming more not because of increase of productivity but rather because of government handouts. Redeveloping shanty towns is a good thing but handing out free cash to people is not. Its a good thing that this is slowing down. It should end. Just look at Brazil and Venezuela to see what this could lead to.
Its natural for Beijing and Shanghai to slowdown in all aspects as they become more developed.
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Analysis from nut cases worth less than toilet papers
You do realize what "the epoch times" is, do you? Any words from it is junk. And the CBB is from the one who dream of China's fall every night. Put it in perspective, would you believe the words of NK about SK? I am sure you won't give a diem. So don't bother to bring it in.
Jura The idiot
General
now noticed the tweet
88 percent adults and 94 percent youth in China are optimistic about the future of their country, ranking the highest in a multi-country study by Ipsos, a France-headquartered research firm
88 percent adults and 94 percent youth in China are optimistic about the future of their country, ranking the highest in a multi-country study by Ipsos, a France-headquartered research firm
do everyone a favor and don't quote or even mention anything from The Epoch Times.