Chinese Economics Thread

[Blitzo]

I dont know if there will be an economic colapse in china. But judging by a lot of news outlets (now the people´s daily too), china has a big and growing debt problem, with lots of zombie capital sloshing around. We see bubble after bubble in china. (first in the stock market, now in real estate and commodities). And the chinese government doesnt seem to do anything to stop it, nor does seem to have a credible solution for it.

Yeah, I'm saying that all the stuff you listed are symptoms that have been discussed in media for at least the good year or so... nothing too new, for the sake of context.

There's really a whole bunch of factors which have caused those symptoms, from immature financial markets, to overhangs from previous stimulus after the GFC, and also the overall economic rebalancing... They're not the kind of things which can be fixed within a year or two.

 

[Equation]

Still nothing like a good ole fashion American tax payers expenses in the Trillions of dollars to bailed out those banking and loaning criminals back in 2008 has ever happen in China. The lame stream media is just trying to get the domestic audience to forget about it by desperately pointing fingers at the other guy. Not to mention US REAL deficit is growing at $19 Trillion and counting. It takes a prudent government to stop it, but I wouldn't count it considering the people have a choice of either Trump the clown or Hillary the Criminal for president.

 

[Jura The idiot]

Yeah it's back to normal.

OK so I'll post what's the index only once it reaches 2000 or 4000 and then 1000 or 5000

 

[Jura The idiot]

... either Trump the clown or Hillary the Criminal for president.

LOL Equation you're rambling

 

[AssassinsMace]

OK so I'll post what's the index only once it reaches 2000 or 4000 and then 1000 or 5000

The Chinese stock market isn't an accurate gauge on the economy as has been said long before? Even Western experts call it not legitimate. That's what they said when it was up around 5000. So they can't say it crashing down is now all of the sudden a legitimate gauge. Companies in China aren't investing their worker's retirement funds in the stock market like what happens a lot in the US. Yeah people lost money but it's like gamblers losing money.

 

[kroko]

They're not the kind of things which can be fixed within a year or two.

Perhabs they will have to be, at least partially. If china keeps pilling up debt like it is today, its gonna get a big crisis until the end of the decade.

 

[SamuraiBlue]

The Chinese stock market isn't an accurate gauge on the economy as has been said long before? .......

How could it?
You have to second guess every financial report companies announces with speculations gone wild. It's more like spinning the dice at the crap table then any high risk/high return investment.

 

[Blitzo]

Perhabs they will have to be, at least partially. If china keeps pilling up debt like it is today, its gonna get a big crisis until the end of the decade.

Well in my last post I was talking about being able to successfully fix all the inefficiencies, which obviously is going to take many years, possibly decades to truly get the effects felt.

They are obviously going to have shorter term immediate measures to mitigate the effects of debt in the best way they can.

 

[antiterror13]

Interesting figures of GDP PPP from latest CIA Factbook.

Please, Log in or Register to view URLs content!

Didn't realise India is almost 2x of Japan

 

[ahojunk]

Please, Log in or Register to view URLs content!

2016-05-16 15:36 | Ecns.cn | Editor: Mo Hong'e

(ECNS) -- China may lower its threshold for cities to build metro systems from a population of at least 3 million in an urban area to 1.5 million, a move that could drive infrastructure investment, Economic Information Daily reported.

The newspaper, citing authoritative sources, said China's new stage of economic growth, expanding scope of cities, and increasing traffic demand all mean population is no longer a key element in approving the construction of metro lines.

In some western countries, a population base of just 1 million is required, much lower than China's current requirements, which also set a city's GDP at 100 billion yuan ($15 billion) and financial revenue at 10 billion yuan.

Ning Jizhe, a deputy head of National Development and Reform Commission, China's economic planner, and also head of the National Bureau of Statistics, said investment in infrastructure will continue to play a key role in helping realize economic growth and social development targets.

China will invest around 4.7 trillion yuan in transport infrastructure projects over the next three years. Funds will be provided for about 303 projects ranging from waterways, roads, railways, and metro systems to airports.

Such funds will give priority to promoting the preparation needed to build metro lines in 103 cities, with an expected length of 2,000 kilometers and a total investment of 1.6 trillion yuan.

Liu Yuanchun, president of the National Academy of Development and Strategy at Renmin University of China, said road construction has become saturated in first and second-tier cities but that there still is huge investment space for metro systems.

Sources from Industrial Securities said regional governments are interested in building metro system because it involves a massive production chain, can fuel economic growth and enhance public image.

The relaxed policy may result in an additional investment of one trillion yuan as more cities plan to building metro lines, said Li Xun, vice president of China Academy of Urban Planning and Design.

It's also expected that private investment would be supported by favorable governmental policies regarding metro line projects.