Category: China Economy
The analysis published under this category are as follows.
Wednesday, February 13, 2013
China Economy Out With the Dragon, In With the Snake / Economics / China Economy
By: Frank_Holmes
During this Chinese New Year, more than a billion people will be welcoming in the Year of the Black Water Snake, celebrating with family and friends all week long. The previous Year of the Black Water Snake was in 1953, which was when China launched its first Five-Year Plan and the average annual income for a family in the U.S. was about $4,000.
As the Dragon took its last breath of the year, it exhaled plenty of fire into China: Looking at year-over-year data as of the end of January, new bank loans, passenger car sales and exports all rose while inflation was slightly lower. Imports of key commodities we track, crude oil, aluminum and copper, were also exceptional, with month-over-month increases of 6 percent, 4 percent and 3 percent, respectively.
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Sunday, January 27, 2013
Is China's Economic Miracle Government Sponsored Fraud? / Economics / China Economy
By: Graham_Summers
A few months ago, we asked, “is China an economic miracle or one giant government sponsored fraud?” Our views were the latter with corruption as one of the key driving forces for wealth creation and economic growth in China.
Monday, January 21, 2013
Confusing Economic Data from China; What’s Really Happening? / Economics / China Economy
By: InvestmentContrarian
Sasha Cekerevac writes: Recently, we have heard and seen some data stating that the Chinese economy is beginning to rebound. Many analysts have started to raise their economic forecast for the Chinese economy in 2013.
One of the difficult aspects when calculating an economic forecast for the Chinese economy is that much of the official data from China are questionable.
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Thursday, December 20, 2012
The Coming China Economic Crisis / Economics / China Economy
By: Clif_Droke
When Bert Dohmen talks, smart investors listen.
In 2007 when most investment analysts and economists were downplaying the developing credit market troubles, Bert warned investors that the probability was very high that the troubles would escalate into full-blown crisis and would produce a crash of historic proportions. He chronicled the developing credit crisis in the pages of his newsletter and also published a book in early 2012 entitled, The Coming China Crisis, which provided his insightful views on the emerging crisis in depth.
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Tuesday, October 30, 2012
Is China's Economic Boom Over / Economics / China Economy
By: InvestmentContrarian
Sasha Cekerevac writes: The strength of the Chinese economy over the past two decades has been nothing short of amazing. Because of this Chinese boom, we’ve seen one nation’s large consumption have a heavy impact on global commodity prices. The Chinese economy also has been a large driving force for lowering inflation levels for Western nations. As Western countries like America import cheaper products, the average consumer can buy a lot more goods for the same price.
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Thursday, October 18, 2012
China’s Economy Slowing Down as Power Output Drops to Four-Month Low / Economics / China Economy
By: Mike_Shedlock
A rally in Asia is underway this morning as Wen Jiabao, China’s premier is upbeat on China’s economy
Wen Jiabao, China’s premier, has given his most optimistic assessment of the Chinese economy since the start of the year, saying that it had stabilised and that the government’s target of 7.5 per cent annual growth was well within reach.
Tuesday, October 16, 2012
Worried U.S. Econcomy? You’d Better Watch China / Economics / China Economy
By: InvestmentContrarian
George Leong writes: What happens in China will have an impact on the U.S. economy and the global economy. The linkage between economies worldwide has become more profound over the past decade. This is why, as an investor, you need to be fully aware of the situation across the Pacific.
The state of the Chinese economy continues to ramp up heated discussion specifically concerning the immediate need for further monetary stimulus to drive domestic consumption in China.
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Friday, October 12, 2012
China Banking Ponzi Crisis, China Will Grow Old Before it Grows Rich / Economics / China Economy
By: Mike_Shedlock
The Ponzi schemes and off-balance sheet loans in China's banking system are in the forefront of today's news. Reuters reports Bank of China executive warns of shadow banking risks
Read full article... Read full article...A senior Chinese banking executive has warned against the proliferation of off-book wealth management products, comparing some to a Ponzi scheme in a rare official acknowledgement of the risks they pose to the Chinese banking system.
Thursday, October 11, 2012
Is China an Economic Miracle, or Massive Government Sponsored Fraud? / Politics / China Economy
By: Graham_Summers
History has shown us countless times that centrally-‐planned, command style economies do not produce long-term economic growth. We’ve seen this will the Soviet Union, the UK, the US-since the Tech Crash, and today in China.
I realize that many would argue China has adopted free market policies with its “free market zones.” However, even this terminology reveals China is nowhere near a free, dynamic market (a free market is simply a free market, not a “zone.”).
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Tuesday, October 09, 2012
China and the Global Economic Crisis of Industrial Overcapacity / Economics / China Economy
By: Andrew_McKillop
EARLY MATURITY
This term now has a special meaning. Not only OECD economies, and especially their leading industrial manufacturing sectors, but also these sectors in the Emerging economies are downsizing at an accelerating pace. After the shrink in industrial and manufacturing activity, in the mature or "post mature" OECD economies, comes the downsizing of the entire economy which in Europe, especially in the PIIGS, is now the rule and a new "tradition". Any other way is now an eccentric hope, and outside the PIIGS an increasing number of other EU27 economies are moving to net shrinkage, including the UK and France.
Monday, October 08, 2012
World's Brightest Minds Migrating to China, Brain Drain Creating the "Chinese Dream" / Economics / China Economy
By: Pravda
China actively took up the issue of attracting highly skilled professionals, scientists and managers to the country. Foreigners are offered attractive conditions, and observers are already talking of this trend as the "brain drain" into the PRC. China that does not shy away from learning from other countries intends to create the "Chinese dream".
Wednesday, October 03, 2012
China and Global Economic Recovery / Economics / China Economy
By: Ian_R_Campbell
Why read: To test the contemporaneous views I expressed four years ago, to observe similarities and differences then and now, and to determine if you agree with my current views.
Commentary then: On July 31, 2009 I commented as follows:
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Sunday, September 30, 2012
China Painful Economic Rebalancing Act Ahead? / Economics / China Economy
By: Mike_Shedlock
HSBC China Manufacturing PMI™ shows Output falls at fastest pace since March .
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New export orders fall at fastest rate in 42 months
Tuesday, September 04, 2012
Competing with China, the Real Answers are Never that Simple / Economics / China Economy
By: Money_Morning
Keith Fitz-Gerald writes:Q - The Chinese copy everything. Companies can't make money there, especially lately.
A - That's simply not true. Domestic Chinese companies have made plenty of money. So have foreign companies like McDonalds, ABB, Coke, and even GM, which have been fabulously successful there because they've taken the time to localize their products.
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Sunday, July 15, 2012
China's End Game, the dark side of a great deleveraging / Economics / China Economy
By: Dee_Woo
1. The frustrated and aggressive central bank
If one wants to know how bad the health of China's economy has gone, look no further than PBOC's composure, which seems rather frustrated and aggressive as of late. On 5th July, the central bank cut benchmark interest rates for the 2nd time in less than a month. This happened right after the fact that in December 2011, PBOC cut the reserve requirement ratio(RRR) by a 50 bp to 21%, it followed up with another 50 bp in February and another 50 bp in May to 20% currently.
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Saturday, July 14, 2012
China Economic Growth Slows in 2012:Q2 / Economics / China Economy
By: Asha_Bangalore
Real GDP for China slowed to a 7.6% pace from a year ago in the second quarter compared with an 8.1% increase in the first quarter. The latest read on GDP growth in China is the slowest since the first quarter of 2009 not only on a year-to-year basis but also on a quarterly basis (See Chart 3), with the second quarter gain at 6.4%.
Tuesday, July 03, 2012
Unmasking China, the Asian Giant / Economics / China Economy
By: Frank_Holmes
Chinese operas have been keeping audiences enthralled for hundreds of years with mythical characters, enchanting stories and elaborate masks that add drama and mystery. While this fantastical treatment is appreciated in the theatre, it isn't in global markets. Investors don't like mystery--think of how uncertainty has spooked markets in recent years.
Global investors are rarely privy to every detail about the economy; that's why it's necessary to rely on multiple data and research to make decisions and be cautious of extreme views that unnecessarily arouse suspicion, skepticism, and criticism. These opinions may grab headlines, but rarely do they help investors' portfolios.
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Tuesday, June 19, 2012
Niall Ferguson: China, Turmoil and Triumph, a Flawed Understanding of China? / News_Letter / China Economy
By: NewsLetter
The Market Oracle NewsletterApril 2nd , 2012 Issue #4 Vol. 6
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Tuesday, June 12, 2012
Global Economic Growth, China Eases the Way / Economics / China Economy
By: Frank_Holmes
Following negative data last week, investors were clearly concerned about global growth and anxiously anticipated government actions. While Europe and the U.S. disappointed investors, China surprised on the upside by cutting interest rates. The market reacted positively, as the S&P 500 Index increased 3.7 percent.
It's clear the government's tone in China shifted this week with the rate cuts. The government appeared to be comfortable with slower growth, but that position seemed to change as the country took steps to avert a hard landing and cut interest rates to stabilize the economy.
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Tuesday, May 15, 2012
World Looking to China to Fire Up Its Economy / Companies / China Economy
By: Frank_Holmes
Following on the heels of renewed concern over Europe’s debt situation, China released its monthly economic data. Fixed asset investment, industrial production and retail sales all rose in April, yet growth was not as strong as analysts anticipated. “Weak” is the word to describe China’s April figures, says CLSA’s Andy Rothman in his Sinology Report.Read full article... Read full article...