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It seems like China's economy is coming to a grinding halt.
"New local currency bank loans plunged by 89% in July from June to 345.9 billion yuan ($47.64 billion), less than half the 800 billion yuan analysts had forecast in a Reuters poll."
With China at risk of tipping into prolonged stagnation and a spiralling property crisis threatening financial stability, there is growing unease over why its leaders are not rushing to revive the world's second-largest economy.
Evergrande's US$340 billion debt load is massive! The other Chinese real estate developer, Country Garden, with $200 billion debts is also struggling recently to avoid defaulting loans.
"Evergrande has struggled to pay off its loans after officially defaulting on its debt in late-2021. The property company’s debt load reached 2.437 trillion yuan ($340 billion) by the end of last year. That is roughly 2% of China’s entire gross domestic product."
Current Property Investment Index (Latest). Contains comparison of indicators for residential property investment. Apartment price to income ratio, price to rent ratio, gross rental yield, loan affrodability index, ...
Current Property Investment Index (Latest). Contains comparison of indicators for residential property investment. Apartment price to income ratio, price to rent ratio, gross rental yield, loan affrodability index, ...
With China at risk of tipping into prolonged stagnation and a spiralling property crisis threatening financial stability, there is growing unease over why its leaders are not rushing to revive the world's second-largest economy.
They very clearly stated that they are cracking down on economy, and they are clearly downing major businesses, after another.
This is a very intentional dismantlent of "overgrown" economic entities.
On the other hand, Chinese military hardware production is beating records due to cheap engineers and high value labour specialities like welders being available for peanuts.
Yer, even though short term economic growth rates from China are still rather good, it’s clear that there are substantial structural issues which are not being addressed in a manner consistent with long term consumer and total factor productivity led growth.
It’s even more concerning by the government’s recent behaviour during the revelations of China’s high youth unemployment, who instead of undertaking much needed reforms to address the issue, they instead remove it from their released statistics
Still they have atleast another ten years to continue to benefit from continued capital and investment fueled growth owing to the continued migration of agriculture rural based workers to urban employment within the industrial and service employment sectors.
Yer, even though short term economic growth rates from China are still rather good, it’s clear that there are substantial structural issues which are not being addressed in a manner consistent with long term consumer and total factor productivity led growth.
It’s even more concerning by the government’s recent behaviour during the revelations of China’s high youth unemployment, who instead of undertaking much needed reforms to address the issue, they instead remove it from their released statistics
Still they have atleast another ten years to continue to benefit from continued capital and investment fueled growth owing to the continued migration of agriculture rural based workers to urban employment within the industrial and service employment sectors.
It's probably too optimistic. PRC's structural problems and ideological systems will not allow it to happen.
"Still they have at least another ten years to continue to benefit from continued capital and investment fueled growth owing to the continued migration of agriculture rural based workers to urban employment within the industrial and service employment sectors."
www.cnbc.com
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