China's Economic Crisis is Getting Much Worse.
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- čas přidán 13. 06. 2024
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China is suffering a major economic crisis, with a stock market crash, deflationary pressure, a real estate crisis and sky high youth unemployment. But why isnt the Chinese Government stepping in to offer effective stimulus?
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★ ★ CONTENTS ★ ★
0:00 China's $6T Stock Market Drop
1:06 Painful Deflation Continues
6:06 China's Weak Economic Data
8:28 China's Unemployment Crisis
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Brandon van der Kolk is authorised to provide general financial product advice in Australia and is an Authorised Representative (Number 1305795) of Guideway Financial Services Pty Ltd, AFSL Number 420367. Any advice is general & does not consider your financial situation, needs or objectives so consider whether it's appropriate for you. Read Brandon's Financial Services Guide available from guideway.com.au/NewMoney.pdf. Past performance is not a reliable indicator of future investment returns.
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I think you mean USA. Replace China with USA and it makes more sense.
so when will China's economy be collapsed, dmbass? tomorrow? next week? next month? next year? next decade? or next century?
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Not like we're seeing REAL numbers out of China - I wouldn't invest in China ever again.
meaning you invested in them before ?
Yes he sank his entire savings...all $2.50
😂😂😂😂
@@heretic_
I bet you have never been there. Yes, I bet you are going to say you wouldn't want to go even if they paid you. hahaha@hieveryone2003
Because you are a Sinophobe and believe crap like this.
China growth story is long over, stay away
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The problem facing the CCP is the problem that confronts all socialist authoritarian regimes, eventually-- they have run out of other people's money. The consistent growth of the Chinese economy has been (to quote the late former premier Li Keqiang) 'man made'. Huge debts have been piled up to build infrastructure of marginal utility. As the amount of money spent gets larger, every year, the central government claims that there has been economic growth, but the infrastructure investment has long passed the point of diminishing returns and the revenue from these infrastructure investments does not cover the payments on the debts taken on to build them. With the bursting of the real estate bubble, local government land sales no longer cover the gap between local government tax revenues and local government spending. Financially strapped local governments are cutting spending every way they can, including rolling back salaries of civil servants, further reducing domestic consumption. It was huge amounts of stimulus spending that got Chin to this point. They may not have the money or the stomach to try further stimulus spending.
Just as the Chinese Communist Party was forced to admit the truth about Chinese population decrease, the CCP will eventually be forced to admit the true state of Chinese economic growth, if only to themselves.
Under-rated comment!
CCP will never admit mistakes, it will continue doing policies that are destroying the economy.
Do you realize that calling the Communist Party of China(CPC) as CCP is like calling the Democratic/Republican Party the Yankee Party, or is it intentional?
@@johngate70 The CCP are the rulers of China.
Yeah, but hasn't China's economy been crashing every year for 40 years straight?
Deflation is a natural reaction to a multi-decade bubble in chinas real estate market. Prices need to correct.
1990. The Economist. China's economy has come to a halt.
1996. The Economist. China's economy will face a hard landing.
1998. The Economist: China's economy entering a dangerous period of sluggish growth.
1999. Bank of Canada: Likelihood of a hard landing for the Chinese economy.
2000. Chicago Tribune: China currency move nails hard landing risk coffin.
2001. Wilbanks, Smith & Thomas: A hard landing in China.
2002. Westchester University: China Anxiously Seeks a Soft Economic Landing
2003. New York Times: Banking crisis imperils China
2004. The Economist: The great fall of China?
2005. Nouriel Roubini: The Risk of a Hard Landing in China
2006. International Economy: Can China Achieve a Soft Landing?
2007. TIME: Is China's Economy Overheating? Can China avoid a hard landing?
2008. Forbes: Hard Landing In China?
2009. Fortune: China's hard landing. China must find a way to recover.
2010: Nouriel Roubini: Hard landing coming in China.
2011: Business Insider: A Chinese Hard Landing May Be Closer Than You Think
2012: American Interest: Dismal Economic News from China: A Hard Landing
2013: Zero Hedge: A Hard Landing In China
2014. CNBC: A hard landing in China.
2015. Forbes: Congratulations, You Got Yourself A Chinese Hard Landing.
2016. The Economist: Hard landing looms for China
2017. National Interest: Is China's Economy Going To Crash?
2018. CNN: Forget the trade war, China's economy has other big problems
2020. Economics Explained: The Scary Solution to the Chinese Debt Crisis
2021. Global Economics: Has China's Downfall Started?
....
Yet it's already 2023 and China's economy is still going strong.
a) you aren't Christian b) china's economy is in the toilet @@jesussonofgod6284
@@jesussonofgod6284 any day now!
Did huge Chinese corporations liquidate during those other headlines?
@@jesussonofgod6284 Those headlines are funded by the imperial US's annual $90 Billion anti China campaign.
1 inflationary thing in China is the numbers they put out. I wonder how many people actually trust them.
Wall Street、Ponzi Brothers、Japan's economic bubble - Human have never learned anything from history or acted upon any lessons they might have drawn from it
All because of greed
It's not motivating to buy a home when it's always a possibility that you won't be able to withdraw your own money from the bank.
@czarcoma Absolutely correct.
You don't really own houses in China afaik, the government does.
it's especially not motivating to buy a home when they produced way too many of them and you don't even own the ground
@@schloops8473 true. Also, regular people put most of their money in real estate because they're not allowed to invest in company stocks? Chinese economics is weird.
yah, they were coralled into that ponzi scheme and it blew at their face. They worked hard and the ccp's ineptness and corruption stole them from their just reward and since there's very little money for non-ccp pensions, they are really stuffed@@czarcoma
Self inflicted wounds. Autocracy doesn’t work.
Nothing beats the Imperial US's fake democracy.
Given that hang Seng index is in its 2003 value, Needless to say, All of those fears are already are part of the price. They already surpassed the greatest depression in the usa
The price levels are actually crazy right now!
As the world prepares with rate cuts and fears of businesses working on lower profits, China has some good entry when new debt expansion comes.
Thats a good point
@@NewMoneyCZcams Not crazy, bur realistic.
@@dimsi1 Don't you mean IF?
When China turns into USSR at 8:50 (10:00 too) xD
I'm not so sure of the legal situation and even more terrified of the state of the accounting practices. Surely it's an attractive place to invest now given the prices, but I don't trust I'd be able to capitalise on it in a few years if I buy some equity there. It's got questionable investor protection, especially if you're not Chinese.
@bla7091 There is little investor protection even if you are Chinese.
Remember, be greedy when everybody else is fearful.
Or look to invest in opportunities that aren’t morally bankrupt.
It's simple...Marketing 101: Love your customer. The US was China's biggest customer, and there's nothing on the horizon to suggest the CCP is going to change their ways.
@brn2bwild2001 Good point. There is nothing more beneficial to China than a healthy American economy, meaning Americans buy lots of Chinese goods. Xi and the COC do not understand thst.
The US has not stopped importing huge amounts of stuff from China. In fact it can't stop.
Many people think supplier is more important when customer absolutely has all power
US is not global seller as China is but it is an enormous buyer, it can choose who to make rich or not
@@abdiganiaden Oil buyers csnnot choose not to buy any oil.
@@Withnail1969 the point is there are many sellers to choose from, but there are few rich buyers
Great report.
Clear and easy to understand.
Excellent analysis!
0:22 The data is wrong. I'm not sure why this video making up fake data. I just checked the market valuation of each country. Japan is around 6.15T while China is around 10.6T.
Where exactly do you get the data from? The market cap was at 7.26T in Jan _2023_ as reported by the WFE.
Besides, even if you were to argue against that specific number-the trends from the CSI 300 (which is compiled by the China Securities Index Company) are clear.
This proves the virtue of keeping a friendly relation with your neighbors and NOT spitting at everyone. 😺
Just curious. How do you get accurate economic data from China?
With the CCP in power, you don't. It was the same with the former Soviet Union, they literally lied about everything.
@ernieburgos7702 Accurate economic data and China is an oxymoron. There is some reliable data. Chinese import data is suspect. Foreign export data is more reliable as are foreign import data from China. Foreign data on Chinese investment is reliable. World market prices for commodities are reliable.
This is very simple, eveything that goes with west narrative, which is basically China bad, is reliable.
Everything else, even the not so bad but not so good, is trash and not reliable CPC lies.
You cant!
Perhaps they need to look into the Western term of, "poetic justice".
lower interest will hurt the CNY, especially during the time when USD is so strong
What's surprising is Hong Kong's been dragged down and hasn't saved China.
Why? China promised "one country, two systems," but that was a LIE, and their heavy-handed interventions in both politics and the economy of Hong Kong...haven't you been paying attention to all this? It seems like old news by now? "Surprising"? Really???
How is that surprising China‘s dictatorship took over Hong Kong’s democracy of course that marked Hong Kong’s downfall. Also you can’t compare one of the biggest countries on earth with a single city
Nor surprising at all. HK was a big key to Chinese prosperity. It's the place where foreigners felt most comfortable doing business. And Xi destroyed it.
@@douglassun8456 time to wake up from your fantasy dream. Hong Kong was full of foreign spies, and now China central gov crushed it for good. i know as a foreigner, they must feel very very sad.
I remember my visit to China back around 2016. Most businesses were excited about the future domestic market. In fact as a US buyer, it was difficult to negotiate, because most people were telling me that their goal is to do more business domestically than with the world. But the consumption was not evenly distributed even back then. I could not see countless luxury malls empty while the low end stores were busy. With the population decline, the pandemic, and the corruption, I think most people lost confidence in the future economy and their country. I truly don’t know if China can recover in the near future.
China has 1 billion more people than the usa. People harping about population decline are funny. Only decline i see is white americans being minority in 15 years😂
@jackiebang4717 Very important observation. To your list of "population decline, the pandemic, and the corruption" I would add the turn away from free speech and other basic civil liberties. From afar in chat rooms at the same time, I noticed a fundamental shift. Chinese interlocutors stopped trying to convince me that China was democratic. Xi thought was becoming the main ideal.
You obviously worried too much about a foreigner country than your own country.
Wait to see when dollar starts to decrease interest rate.
The CCP has broken the spirit of the Chinese people.
They can't recover unless winnie the pooh is replaced.
Thanks for the buy signal.
I’m sure you can find equally good investment opportunities with much less moral bankruptcy.
but deflation happens when people do not have money anymore to pay high prices. it always horrifies economists but as a relatively poor person i love it when things get cheaper.
Sounds great until mass layoffs and unemployment happen. They drop because people stop spending. One person’s spending is another person’s income. So no spending means no income which means layoffs. 2 major deflationary periods in the US was the 1930s and 2008. Neither are times you want to go back to I’m sure.
Chinese deflation happens due to productivity gain and efficient factories creating abundance of goods and services. Just look up the number of industrial robots installed in 2022 and 2023.
It’s a matter of time before western economies completely lose competitiveness.
@@kchal0 I'd take the past 20 years of deflation I've lived in Japan for, thank you very much. Love your local bias, doesn't work in the land of the rising sun. Of course, you'll come back and Japan's "busted" but I feel like entering a 3rd world country every time I leave Tokyo airports to arrive in the Jungles that are London, LAX, or JFK. You would too if you only knew as much. But alas....
They have dishonored the Shaolin Temple and now their kung fu is weak.
Classic!
🤓
Super Video .. transparent ..
Very informative. And great plug. Really want to try Blinkist. Those stats are pretty impressive but still not sure I understand how serious this is. Seems a lot of these are the types of problems that we'll suddenly stop hearing about and will just fade away. Especially with a government like that of China that is capable of action and not locked in political deadlock like many democracies are.
quick note on the decrease of youth unemployment, they revised the calculations by "removing unwanted elements", or something like that. so really the unemployment is probably as high, if not higher, then it was before they stopped counting
@@kenbehrens5778 apparently also removed large quantities of the rural working population
Yet the prices of goods in australia are going through the roof. That means australian companies and importers are ripping Australians off big time.
Exactly the same in the United States. Criminal Thieves are ruling the World right now.
Most of that inflation is due to transport, unfortunately shipping hasn't failed or faced stress, or decided to reduce their rates. The primary factor for Australian market inflation is reduced export and import due to transport costs affecting order sizes and quantities. This has knock on problems with efficiency and supply chain profitability.
The other stupidity is that Australia internally sets their rates to a global standard, despite having to handle freight and taxes locally. This affects fuel and energy pricing, which affects primary industry. They can't separate from international fluctuations if their production is tied to global problems they aren't part of. If they detach from the global market, they don't get the se export options, so it's a catch 22. National pricing or national reserves are likely a solution in the long term, but that's a difficult policy to straddle in a non-socialist country ie Suffer for the People, or be replaced by a company that will bend/break.
While fuel has inflated due to war(s), supply chain problems of the US destroying the nordstream pipeline, selling crude reserves, reduced travel routes for crude oil, as well as raised piracy concerns and tariff increases.
The biggest problem with depreciation is that it's riding a thin profitable margin, with companies that rely on export surviving while others scramble to find new customers and stale inventory. That belt tightening affects growth, but also risk factors. Orders become smaller. Transport prices go up. Smaller orders tend to cost more to handle for efficiency and labour.
China might still be making "widgets" for export, but the delays and quality control/customs means that a lot of product is now being delayed for CNY holiday periods in Feb 2024, which affects Q1 and probably Q2 if there's no surge in consumer spending.
The Australian market issues, due to reduced orders, and reduced bulk orders means a lot of smaller orders cost more to bulk ship and drop ship.
Partially because air freight is not being subsidised by as many passenger flights and the general rise in fuel processing and excess reserves of petroleum.
@@Toliman. Australians are overconsuming. Orders are not getting smaller. As for fuel costs, its BS to blame the cost of fuel on a war. Ukraine was the excuse previously. Now we have Gaza too and the price of fuel has dropped 25%. Proved you wrong. Wait until project iron boomerang takes off in australia. Its going to crush international transport prices for australian businesses. Just one of the many massive benefits coming to Australia for decades to come with this single project.
Thanks for removing my comment CORRUPT youtube. 👏 good job silencing opposing opinions like a 3rd world dictator would do. 👏 👏 👏 👏
I thought they already collapsed two weeks ago which is two weeks before two weeks or two weeks before two weeks two weeks two weeks two weeks or two weeks more?
How will the slowing Chinese economy affect Alibaba stock? Thanks for the great video!
A crash kills almost everyone , I think Alibaba will be includdd in that. I hold Alibaba as well.
a part of economy used to lie heavily on real estate and retail/e-commerce. Retails were heavily impacted by covid. Also global imports from China dropped, reducing orders from factories in East and Southeast of China.
8:36 actually the way the government calculates unemployment among youth is so exclusive that It’s theorized the real number is most likely double or potentially triple that number.
It’s often the best time to invest when things seem the worst.
You should've invested some money in the Jap real estate market in the 90s then.
Something Something Greedy When Others Are Fearful Something Something
Looks like a falling knife to me.....
Yes, but not where the government can seize your assets at any time, without recourse.
@@ZeroToPatrick Sometimes, but not when Xi and the CCP are in charge.
Weren't you making videos about a crash just a few months back ?
With China supporting Russia, I doubt they will see significant foreign investment anytime soon. Consumers abroad also figured China is not our friend and make choices everyday to not buy stuff from China.
Good luck...
China is not the enemy. They are motivated to thrive and building wealth. Not to wage war.
Good luck...
China is not the enemy. They are motivated to thrive and building wealth. Not to wage war.
Good luck...
China is not the enemy. They are motivated to thrive and building wealth. Not to wage war.
Good luck...
China is not the enemy. They are motivated to thrive and building wealth. Not to wage war.
Good luck...
China is not the enemy. They are motivated to thrive and building wealth. Not to wage war.
shrinking population and rising youth employment ... this is a deflationary cycle that will be difficult to break.
China faces a real estate bubblocalypse. Consider the ratio of the value of its housing market to its GDP. According to Statista, the total value of China's housing market is about $135 trillion. As for GDP, China recently CLAIMED it was $17.7 trillion. Dividing 135 by 17.7 gives a ratio of about 760%. In the US the ratio is 148%. Moreover, China's true GDP is not $17.7. Its true GDP appears to be somewhere in the neighborhood of $7 trillion. Using that GDP number, China's ratio comes to more than 1,900%, which is almost 13 times higher than the US ratio -- and that's despite the US itself being in a bit of real estate bubble.
Rodium Group research firm estimates it's closer to 1.5% gdp mostly from consumers (2) and zero for investment and gov spending, with -.5 for exports.
"bubblocalypse" 😮
Absolutely true.
With world markets tumbling, inflation soaring, the Fed imposing large interest-rate hikes, the treasury yields rising rapidly, markets manipulations, and many other factors makes me wonder if people still make profits from all these investing BS.
I don't fully agree with you... With the right steps & predictions, one can make so much profit from the market in a day, do your own research.... Believe me or not as an inexperienced person who knows next to nothing, my net-profit is well over +80% just in a couple of months.
Time to buy
Can we get some deflation here in North America?
Maybe China, out of all other Countries has the courage to do the right thing and not bail out enterprises that have Mal-invested Capital. Maybe this is better than hyperinflation.
CBA pb ratio is 2.5
China big 4 banks pb ratio is about 0.5
How didn't I find you earlier mate?
So time to buy?
I think it is more than that. How can u calculate it? Too many farmers
The economy and the stock market are not the same. The US economy didn't grow 22% last year
@Roan-xj1mg True, but they are related, especially over the long term.
But it did grow over 3% which is big for the size of our economy. Plus the stock market was rebounding from 2022. It now being at all time highs is backed up by the strength in our economy.
Great video! I love the analysis.
japan is back, told ppl to buy the nikkei years ago, a massive 30 year correction that broke out in 2017... nikkei companies are all top notch.
9:22 why not start the y-axis at zero? Why?
One thing I learned in grade school, always be weary of charts that dont start at 0.
People trust the Japanese and quite rightly so, which is why their exchange is doing fine. The Chinese, not so much.
Where can we buy that exact Warren Buffett picture?
Let’s never forget Buffet is a Democrat, not a God.
There are no consumer confidences in China due to youth worker unemployment rate very high.
We are all using economic logic but we need to recognise that Xi isn't prioritising economy. He is planning for survival in case of war and sanctions. From that perspective everything he is doing makes sense. If that is not factored into investment analysis, we might wake up to a wild nightmare
That’s it; they are simply keeping more and more of their precious resources to be ready.
@@noBrainGam1ng So has the USA always been doing as well lol.
Absurd.
China is actively burning itself to the ground with poor policy decisions and idiotic wolf-warrior diplomacy.
Terminal decline.
not a good sign for the Choinese. It's as untested military force, and has few allies. As we heve seen, volume does not equal dominance,.
I would invest in chinese stocks if they weren't soacked in authoritarian, human rights denying, dictatorial blood. I would rather support other markets and make less profit.
I respect your principles, but not sure which markets you're supporting then? Every market has leading companies that implicitly (and sometimes explicitly) profit from human suffering in developing nations. E.g.: smart phones batteries materials are sourced from exploited children in the DRC and manufactured by underpaid laborers in China. And the US and European powers have a long history of human rights abuses and undertaking anti-democratic actions (just usually in other countries, not their own)
@@tijmenbuddingh6155 Don’t invest in a stock market where the human rights abuses happen. Beyond morality if they don’t respect human rights why would they respect shareholder rights? China is for transactional profits only not long term investment.
@@barryraymond9004 Very well said. Not well understood is that property rights are a fundamental human right. It is one of the reasons that the American Revolution was the most important revolution in human history and that the Constitution has served us so well.
Dumb 😂
Another risk of investing in China is that Jinping may just change his mind about something, and your company or entire sector ceases to exist.
They don't transition from one industry to another, he simply bans the entire thing and steers the ship 180° in 1 year. Insanity.
I know that I should First fully watch the entire Video, but There's one Thing I remember: it's During crises that Money is Made, "fortunes are Made when blood runs down th street".
I mean it's literally insane to hear a P/E ratio lower than the P/B ratio. I mean the NASDAQ is quite expensive, but that is absolutely insane. And are the earnings already reflecting the economics issues? I mean I remember that the American Stock Market reached its trough in 1933, despite the Economy still going horrible for Many More years. Thus I Wonder when the Market expectations reach their lowest Level, potentially Just a fraction of the intrinsic value.
I think you nailed it! Didn’t even need to watch the whole video 🤣
I’m shopping where the discounts are personally, why buy US stocks at their all time high when you can buy China at their all time lows
I trust the us market. I cannot make myself to put my hard earn money in the Chinese market.
@@henrylau4599 then do yourself a favour and chose value Stocks, avoiding Stocks Like the "Magnificat seven"
@@henrylau4599 You are indeed wise. China may face decades of stagnation or very low growth. We just need to look at Japan in the 90's as an example, but Japan was not a communist government.
Xini the pooh says eat bitterness lol
Things are pretty bad in the United States too.
An ocean of people are now living in their cars unemployed.
Big corporations and rich people own all the corporations and all the land.
Everyone else is displaced and have a hard time finding a place to park their head at night where they won't get hassled by the police state.
Buy when everyone is selling/Sell when everyone is buying! I love fear, that's when you make money. People are buying US stocks and don't seem to see the huge FAKE bubble in the US. I stay away from the major US stocks & indexes, looking to short the US market soon, and keeping an eye on the Chinese markets for a good entry level.
Euroseas stock (ESEA). Very good value option!
According to data released by the National Energy Administration on the 18th, the total electricity consumption of China in 2023 was 9,224.1 billion kilowatt-hours, a year-on-year increase of 6.7%.
So? is this "National Energy Administration" reliable? 8964
Asset inflation is too over-hyped, and a delusion of wealth and prosperity; Incomes generally do not, or never inflate in a corresponding pace - deflation is a necessity for sustainable living in a mania for inflation.
Demographic wedge and youth unemployment
just shows you how noone can predict the future... the stock market is a massive game of roulette ... i still remember the several videos where you analysed alibaba and other chinese stocks
the stock market is a casino but the house doesnt always win… be patient and long-term minded and you will come out ahead
@noelgomesmaster The stock market is not a massive game of roulette. Over time serious investors make money over the long term. No one over time makes money with roulette.
@@dennisweidner288 If everyone simply made money from the stock market. Where does the money come from?
@@gavinlew8273 It's called capitalism. Unlike socialism, capitalism generates wealth. Corporations create products people want and thus can hire people who spend their earnings creating more jobs. I suggest you read about the Asian Tigers. In a little over a single generation, some ONE BILLION people around the world have been thrust from abject poverty to the prosperous middle class. It is the greatest creation of wealth in all of human history. It is all due to shifting from socialism to market reforms (i.e. capitalism).
@@dennisweidner288 I do agree, but where does late capitalism go from here? Wealth cannot grow indefinitely as the planet is finite. You cannot have unlimited growth without something giving way. The Earth doesn't have a price tag.
who didn't see this happening?
Be greedy when others are fearful…
@lukbo9590 That might work with Warren Buffet in America. It is a very different dynamic with Xi controlling the Chinese economy.
***insert quote here***
I really don't see how a global monetary system that is solely based on infinite growth is going to last much longer, regardless of the creative ploys to keep propping it up.
Just wondering why do u use a flag of ussr at around 10 minutes into the video?
Ok till the Advert.
We lied, we stole, we cheated. We have entire training courses - MP.
In 2023 China was doing far better than the USA, which is on the brink of national debt default, several bank collapses in a row, massive layoffs in tech industry, nation-wide worker strikes, global de-dollarizaton, skyrocketing inflation even after so many interest rate hikes like there's no tomorrow.
Don't touch her! Stop touching her!! You're not the same age!!!
LOL!
The Middle Kingdom-mentality pretty much eventually craps on everything in sight.
It’s so bad..
I was just wondering... if the factory of the world is not producing and the supply of stuff is to the world is low, does that not drive up the price in the rest of the world? In that case we definitely don't need to lower rates and stimulate the economy again as inflation will drive up fast then.
Lower quantity produced but at lower prices due to deflation, but other countries having inflation, price might stay the same. Also, might just purchase competing nations goods if reduced supply causes price to be too high.
It's just market correcting itself...
I would ignore the economists' doom-and-gloom predictions on deflation. Deflation is a natural correction, and it will find a natural bottom. China needs to focus on fixing the fundamentals, which does *not* include artificial stimulus to prop up prices.
Deflationary spiral is a problem only in debt based economies.
Good. Maybe Tencent will get even cheaper now
Love your skin and blonde hair😍😍.
Essentially the government are allowing market forces to correct and dictate prices rather than artifically stimulate and manipulate them?
essentially, the dictatorship has pushed so many customers away that even with massive deficits (which are the opposite to allowing market forces to operate), prices still fall.
From 21% to 14% with no job growth = 7% of workforce that completely dropped out and not even looking for work.
@joefromravenna Don't take these numbers too seriously. Not only are they manufactured, but the CCP redefined unemployment.
@@dennisweidner288 the ccp aren’t doing anything different from the current admin.
You didn't mention debt at local governments level.
The world is a scary place now
Peak fear. Time to dollar cost average into Chinese market.
You’re rooting for China?
No one is rooting for anything, but macro-economic sentiment is constantly changing. A little bit of news goes a long way in both directions. Having exposure to global markets is one way to hedge a portfolio. Not necessarily a great one, though, as markets around the world are so inter-dependent …
I keep hearing that since 2008 😂
since 1990 even. every year the same crap over and over again. yet China is getting stronger every single year. those western Sinophobe's have no clue.
i just put like 100 dollar into a chinese stock i either expect a return of -99% or +100% but i feel like the hang seng is closer to the bottom than the top.
Great!!
Short the Market!!
🇺🇲😊
Juat started investing in kweb last month
The actual saying is "It never rains, but it pours".
There’s too much debt in China. It would’ve been a financial crisis in any normal country as it’s the business cycle. The Chinese government is forcing a crisis to NOT happen, but China still need time to de-leverage those debt. The pain will last a while as they won’t let a sudden crash and restart as it would hurt ordinary people the most.
@Alex-L87 "too much" is a gross understatement. The level of debt in China is an order of magnitude beyond anything that any human society has ever had to contend with. That said, debt levels in the West are also high and increasing. And Biden and the Democratic Party see no problem with increasing the debt. At least the CCP recognizes that it is a problem.
are you kidding me?
@@cloudwithwind574 Anyone who does not think that there is too much debt in China is either ignorant or a CCP tool.
@@dennisweidner288 China's debt is urban investment debt, where cities borrow money from banks and then invest in projects in cities, so that cities can develop rapidly and banks can also earn interest! Do you think the investment debt of Chinese cities is about 60 trillion yuan, which only accounts for about half of China's GDP? Also, this is China's internal debt, not external debt! And the debt of the United States is borrowed from other countries, with a total amount of 34 trillion US dollars, equivalent to 126% of the US GDP! China's internal debt can be regulated through government policies, but the United States can only borrow more debt. These two kinds of debt are totally different!
@@cloudwithwind574 You are correct that the U.S. and Chinese debt is different, but for whatever reason, you are hugely underestimating the Chinese debt.
Best time to buy FXI! Reminds me of the doom and gloom of 2008 when SPX kept going lower and lower…and even lower, reaching the mid 600’s before I bought..
@TableTennisLover1234 There is a big difference between the FXI and SPX. Good luck with buying the FXI.
It sounds like a UBI would break a deflation cycle.
deflation is easier to deal with then inflation, China's 2023 GDP was over 5% and USA's was less than that, yet China's stock market does not reflect that, eventually it will balance out and bounce back just like USA stock market.
Why can’t we figure out a way for a dollar or whatever currency to equal a dollar or whatever FIAT for a very long time. Tired of being pressured to spend because inflation rats are eating my savings.
yah but it's important to have inflation so you lose money but it helps the rich as it artificially props up their stocks
Bad policies and trade war.
The deflation is happening arising from less and less domestic real estate turnover. housing price in China is too high to afford, so deflation is inevitable.
Could you please add a Turkish translation? I subscribed to your channel, but unfortunately there is no Turkish translation.
You work for the shorts