Chinese Economics Thread


Expert1324

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So does anyone know what the deal is with Evergrande? Seeing a ton of articles in Western dailies and elsewhere how this property giant is about to fall and cause a ripple effect in the Chinese economy.
China watchers meanwhile are having orgasms and calling it Chinas 2008 moment . I think the major issue is the thousands of families who've invested their money and now the housing projects have stalled.


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Yes, i would also like to know more about this as well, any pros here that can chime in? its making big rounds on western media.

From what i know, it is said that the Chinese government is in a dilemma of helping Evergrande or not, helping it will cause a moral hazard and set a precedence that firms can continue to be reckless as the state will always step in, while not helping will cause the "ChinEsE EcoNomic CollApse" so to speak. Need some professional opinion here.
 

Expert1324

New Member
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@Kaeshmiri bro I don't have much of a detail but looking in with Xi clamped down on property speculation those investment will be return but not on the speculated price. Chinese regulators will restructured the company and everybody will have a hair cut especially the institutional investor. Bro the reason why BlackRock withdrew its bid in buying SHOHO another trouble firm. And I think its better to have the property bubble burst now rather than having a bigger problem in the future while the economy is strong and able to absorb the pain.
Waittt, but if it really burst, the economy would clearly be stagnant for quite some time. which also means we can no longer see and admire those youtube statistic time-lapse videos anymore with positive chinese memes. Is there a no-burst option?
 

Overbom

Junior Member
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From what i know, it is said that the Chinese government is in a dilemma of helping Evergrande or not, helping it will cause a moral hazard and set a precedence that firms can continue to be reckless as the state will always step in, while not helping will cause the "ChinEsE EcoNomic CollApse" so to speak.
I think Bloomberg said that a restructure and a haircut will happen. Too lazy to search for the article now. Search "Evergrande Bloomberg" and you will find it.

Need some professional opinion here
Our resident expert is @Gatekeeper
 

Aval

Just Hatched
Registered Member
The following is said to be found on the wall on Huawei's staff canteen. The fighting spirit of a 16 year old soldier in WWII.

Apologies in Chinese only. But I'm sure you guys have translation on your phone's and computers.

华为食堂门口的一张海报!试问如何不催泪,不爱国!

二战期间,美国记者拦住一名奔赴前线的士兵。

美国记者:你多大了?
中国士兵:16岁。

美国记者:想你的家人吗?
中国士兵:他们已经死了。

美国记者:你觉得中国能胜利吗?
中国士兵:中国一定会胜利的!

美国记者:当中国胜利之后,你准备干什么?娶妻生子?还是继续参军?
中国士兵笑了笑:那时候,我已经战死沙场。

太感人,太伟大了!16岁,还是孩子,在全家只剩一人的情况下,毅然决然上前线!这种必胜的信念,这样义无反顾的精神,怎能不让人泪目!

华为为何在食堂贴这么一张海报?这正是华为的伟大之处!为了国家与民族大义,哪怕前人倒下,后人也要再接再厉,绝不退缩、绝不屈服!
View attachment 77076.
There's a chance all of this is just superficial PR, but if Huawei as an organisation truly believes in and operates by the spirit of this story, then it is a true vanguard of the Chinese people (as much as a private for-profit organisation can be). All Chinese companies should adopt the same mentality.

As a side note, if that photo is accurate, then judging by the stalhelm this soldier was in the National Revolutionary Army. Its good to see the PRC recognising the efforts of the NRA in WW2. The KMT as a party were very questionable, but the NRA fought hard for China and its soldiers deserve recognition for their efforts.
 

drowingfish

Junior Member
Registered Member
Waittt, but if it really burst, the economy would clearly be stagnant for quite some time. which also means we can no longer see and admire those youtube statistic time-lapse videos anymore with positive chinese memes. Is there a no-burst option?
the economy will for sure take a hit if Evergrande goes belly up. but the CCP seems to be willing to swallow that in order to basically reshuffle China's capital market. in the long term it is a good thing. If CCP wants to endure some pain to get to a better place, it might as well do it now when Xi has a firm grip on power.
 

gadgetcool5

Junior Member
Registered Member

China’s Economic Recovery Is Looking Gloomier​

BEIJING—Growth across a range of Chinese economic indicators pulled back sharply in August, as a new outbreak of the Covid-19 Delta variant and tighter government regulations on the property market hit consumer spending and the housing sector.

Retail sales, a key gauge of China’s consumption, rose just 2.5% in August from a year earlier, down sharply from
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, according to data released Wednesday by China’s National Bureau of Statistics. The result marked the lowest pace of growth in a year and missed by a large margin the 6.3% increase expected by economists polled by The Wall Street Journal.

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