Category: China Economy
The analysis published under this category are as follows.Wednesday, March 24, 2010
China, The Coming Costs of a Super Bubble / Economics / China Economy
China may seem to have defied the recession and the laws of economics. It hasn't. When China's bubble bursts, the global impact will be severe, spiking US interest rates.
Read full article... Read full article...
Wednesday, March 17, 2010
Who Wants To Be A Billionaire? / Economics / China Economy
Forbes has released its list of the 500 wealthiest people in the world and while there is a little juggling at the top, Bill Gates and Warren Buffet are still the richest men in America with a net worth of $53 and $47 billion respectively. That makes them the second and third richest people in the world.
Read full article... Read full article...
Wednesday, March 17, 2010
Business Sours on China / Economics / China Economy
A very interesting headline story in the Wall Street Journal, on how foreign business is increasingly wary in doing business with China. So many cross currents happening here, it is hard to even begin to touch the surface of the topic... but a lot of this should be of no surprise. There has been a reason every foreign investment in China is done by joint venture and since the time frame of foreign executives (especially of the American kind) is very different then the Chinese, what has been a 'win-win' in the near term (10-20 years) is going to potentially create some major stresses down the road.
Read full article... Read full article...
Wednesday, March 17, 2010
The Dubai Hainan Connection: The Millionaire Speculators of Wenzhou, China / Housing-Market / China Economy
What does Dubai have in common with Hainan Island, China?
Answer: China's infamous millionaire real estate speculators of Wenzhou. I was recently pointed to a juicy background story at India Times of global property speculation leading from Wenzhou across the globe to Dubai and then back to Hainan Island where just one month earlier, the Wenzhou gang descended upon this tropical island paradise in a well-timed frenzy of property speculation, even by fast-rising Chinese property market standards.
Read full article... Read full article...
Wednesday, March 10, 2010
China Economic and Investment Road Map, Playing Follow the Leader / Economics / China Economy
While it is hard to get a straight answer from an American politician, they do have the freedom to speak their mind and say whatever they darn well want to.
They may often put their foot in their mouth with exaggerations — “I invented the internet” — or say something they regret later — “you lie” — but they have the freedom to say whatever they want.
Read full article... Read full article...
Tuesday, March 09, 2010
China's Economic Challenge / Economics / China Economy
China’s National People’s Congress (NPC) remains in session. As usual, the meeting has provided Beijing an opportunity to highlight the past year’s successes and lay out the problems that lie ahead. On the surface at least, China has shown remarkable resilience in the face of global economic crisis. It has posted enviable gross domestic product (GDP) growth rates while keeping factories running (if at a loss) and workers employed.
Read full article... Read full article...
Tuesday, February 16, 2010
India Worries as China Builds Ports in South Asia / Economics / China Economy
Continued signs of stress among the 2 developing Asian powers. Not the first sign that China's new heavyweight status is causing consternation. [Dec 15, 2009: China's Economic Power Unsettles Neighbors] [Jun 13, 2009: Australia in Perfect Position Aside China, but at a Cost?] China appears to be following the same strategy in South Asia that it has taken in Africa ....
Read full article... Read full article...
Tuesday, February 16, 2010
Goldman Sachs Says China Currency and Economy Trouble Brewing / Economics / China Economy
With a lot of eyes focused on the PIIGS (Portugal, Ireland, Italy, Greece, Spain), especially Greece and Spain, please don't forget about China. Goldman’s O’Neill Says ‘Something Brewing’ in China on Currency.
Read full article... Read full article...
Monday, February 15, 2010
Marc Faber on China Economy Over Capacity Risk of Potential Crash / Economics / China Economy
Marc Faber discusses the financial markets, specifically China's building of over capacity that could result in a stock and economic crash. Though this would still just be a temporary set-back in the long-run as the infrastructure built would help the China continue to grow in the future.
Read full article... Read full article...
Sunday, February 07, 2010
Will China’s Massive Currency Reserves Save Them From Economic Depression? / Economics / China Economy
As the United States and Europe deal with economic contraction resulting from excessive credit expansion that many believe has lead to another Great Depression, China’s future remains hazy. Some argue that China has replaced the US as the global engine of growth because of increased internal consumption, export capacity and massive reserves. And for these reasons, China will avoid the same fate as the US and Europe.
Read full article... Read full article...
Thursday, January 28, 2010
Chinese Quest for Shortcut to Economic Greatness / Economics / China Economy
The Chinese economy must be getting out of control, because the Chinese government is doing the unthinkable: It is desperately trying to put the brakes on the economy. When you pump a stimulus package that represents 14% of GDP through a fire hose into an economy, which was already on shaky bubble foundation, in a very short time you’ll have some serious unintended consequences -- you’ll get super bubbles.
Read full article... Read full article...
Monday, January 25, 2010
China Economy, The Watched Pot… / Economics / China Economy
Doubt that growth of the new creditor economies is the real driver for the metals market is waning ever more rapidly. Not everyone will view that as a good thing, but most will now look to China for the moment and to the other big areas of expansion in due course for cues on which direction the sector will take. That, and recognition of very real supply constraints, has been the HRA stance for most of this century. So it’s time for us to do the worrying.
Read full article... Read full article...
Sunday, January 24, 2010
China Production Capacity Bumps! / Economics / China Economy
Chinese economy soared 10.7% in the fourth quarter, leaving shell shocked analysts in a state of complete disbelief. Chanos even called for a contrarian bet on China. The growth has been very strongly supported by China’s aggressive stimulus spend which have been well observed through Bank lending.
Read full article... Read full article...
Sunday, January 24, 2010
A "Fly On The Wall" Is Bullish On China, The Mother of All Economic Expansions / Economics / China Economy
Stop listening to the bubble doomsayers and pay attention to the realities of why China’s expansion will continue for many years. My observations as a fly on the wall are a collective reflection of what I and other foreign businesspeople living here for five to ten years have experienced.
Read full article... Read full article...
Thursday, January 21, 2010
China's Leadership Serious About Keeping Inflation Under Control and Economy Booming / Economics / China Economy
I’d laugh if it didn’t make me cry.
I’m talking about the money-printing, bubble-blowing excuse for monetary policy that our last two Federal Reserve Bank Chairmen have followed. By chopping and then keeping interest rates close to zero, Alan Greenspan and Ben Bernanke were responsible for creating the painful real estate and credit crisis that we’re going through.
Read full article... Read full article...
Thursday, January 21, 2010
China Lending Restrictions and Beijing's Predicament / Economics / China Economy
Liu Mingkang, head of the China Banking Regulatory Commission (CBRC), said in an interview Jan. 20 that several Chinese banks had been asked to restrain their lending after proving to have inadequate capital reserves. Chinese media reports claimed that new bank loans so far in January have risen to as high as 1 and 1.5 trillion yuan ($146-$220 billion) — approaching or equaling the massive hike in January 2009. As a result, several major Chinese commercial banks (whose names were not given) were given oral commands to stop new lending for the rest of the month.
Read full article... Read full article...
Sunday, January 10, 2010
China Economy and Stock Market Crash Warning From Hedge Fund Manager / Economics / China Economy
This is not a new position for legendary short selling oriented hedge fund manager (who smoked out Enron) Jim Chanos, but he continues to pound the table on the dangers of China. [Dec 16, 2009: CNBC Video - Hedge Fund Maven Jim Chanos on Autos, Banking, and China] It's a tough environment to be short anything globally; I assume he is taking some pain even in his anti automotive parlays.
Read full article... Read full article...
Sunday, January 03, 2010
China Property Bubble May Lead to US Style Real Estate Crash / Housing-Market / China Economy
First, let me say that the term "bubble" could be the most overused term of 2009. We now are calling anything excessive a bubble; it's become stale. Of course some things are developing bubbles, but not every asset class as some would have you believe. Second, much of what I am reading about China today reminds me of the things I was reading in the US in 2005-2006. With the caveat that knowing what information to believe out of China, and how accurate it all is - is many times harder.
Read full article... Read full article...
Wednesday, December 30, 2009
China Leads the Way to Strong Global Economic Growth 2010 and Beyond / Economics / China Economy
China is leading the way to the return of global growth with expectations for GDP growth for 2010 of as much as 10%, which further confirms expectations for the potential of a global growth story surprise to the upside for 2010. Whilst at the present time many analysts / commentators worry about China market bubbles, much as they worried about the "stocks bear market rally" that was always destined for an imminent demise during 2009 which instead was one of the greatest bull markets in history.
Read full article... Read full article...
Sunday, December 27, 2009
China On the Verge of a Great Crash and Its Impact on Crude Oil Price / Economics / China Economy
Dr. Raju M. Mathew writes: China is always a mystery. Nobody knows the depth and complexity of the problems of the Chinese Economy and Society, including the scholars and bureaucrats in China. Their words or expressions are confusing and self contradictory. The Chinese mind has been shaped by Confucius, then a series of wars, defeats and external dominances; then Mao and Chinese Communism and finally the Market Economy and Globalization. Globalization made a small group in China as super-rich who want to have all the pleasures enjoyed by the western billionaires.
Read full article... Read full article...