I remember someone in this thread saying China can't do crap against the US because they hold so much US debts and stand to lose a lot. Yet only a year later, China has already made huge progress in this.
Chinese Economics Thread
- Thread starter Norfolk
- Start date
This statistic only measures urban total income growth, which has lagged rural income growth for a while now.
Also, disposable income measures take-home pay, meaning income after taxes and necessary expenses (like insurance). Total income is before any deductions. I'll also add that the total income is also in terms of nominal RMB, since China has little to no inflation the total income growth will also look weaker than periods of time with higher inflation.
So I would think disposable income matters more in terms of consumer sentiment since there are far more people who are workers (and so only care about their take-home pay) than employees/government departments who need to deal with tax income or obligatory deductions, this is just my personal view though.
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Disposable income's wage component counts everyone while average wages only count people with wages. 100 making 10000 dollars has the same average wage as 100000 people making 10000 dollars but the incomes from wage are vastly different. So basically, this means more people got wages even though wage growth isn't that high.
proelite
Junior Member
Sounds like common prosperity.
so what it is implying is that there is an improvement in employment numbers.
If the US stock market was so dysfunctional then i don't think Chinese companies would have been rushing to list there out of every country on earth despite all the hostilities. So there's a reason many Chinese companies dont ecen consider lostong on the mainalnd. Instead of shrugging it off i think China should focus on making its stock market attractive to her own companies and even foriegn companies. The fact that most of the countrys top tech companies dont even consider lostinf on the mainland shows how bad the stock market in China is. This should be cause for alarm but seems authorities have just accepted thingq this way. Shows the country capital market is not really working the way it should.
FriedRiceNSpice
Captain
It's not possible to address the reasons in a few short paragraphs. The core of the issue reduces down to what are the fundamental differences between Chinese socialist market economic model vs capitalist economic model. Capital allocation occurs very differently under the two systems, a US style stock market is incompatible with the Chinese economic model.
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