The mainland equity market is or is headed where it should be, in the :flush:
The economy on the mainland is or is headed in the :flush:
No doubt, if the equity market was left to the natural process, it would auction towards some kind of fair valuation, far below the levels we're at now
I think the economy was bad before the casino turned sour
TBH, i don't think this economy can ever recover if the culture doesn't change. Business is not conducted here to improve the bottom line of the companies, only the owner! They get wealthy by building stuff and getting kickbacks, its that simple. Its all around you here, at all levels in the organisation, from the security guard to the canteen manager, from the cleaner to the CEO. They're all corrupt...everything else is just like their glass buildings, a great facade!
There needs to be a business revolution here, like the quality revolution in Japan.
One could argue that he's to blame.....
Mao money Mao problems.
[video]http://media.scribblelive.com/2016/1/26/aa7c5976-5b20-428a-a865-1456cc2d4c6b.mp4[/video]
Perhaps now that 'vicious short sellers' and 'major steak holders' have been locked up and banned from selling China's Communist Party has decided do all the selling and get all the action for itself!
George Soros will not win an FX battle with the PBoC. At least that’s Beijing’s message to the billionaire, as conveyed via a characteristically hilarious “op-ed” in the People’s Daily entitled “Declaring war on China’s currency? Ha ha”
Yes, “ha, ha.” Although there’s nothing funny about the $1 trillion in capital that fled the country in 2015 on the heels of the PBoC’s bungled effort to “manage” a controlled devaluation of the yuan.
Although Soros didn’t specifically mention either the RMB or the HKD, he did indicate he is betting against Asian currencies in an interview with Bloomberg TV last week and that, apparently, was cause for Beijing to issue a stern warning.
“Soros’s war on the renminbi and the Hong Kong dollar cannot possibly succeed — about this there can be no doubt,” the People’s Daily says, after calling Soros “the financial crocodile,” and blaming the billionaire for “increasing volatility in already unstable financial markets.”
Perhaps Beijing knows something everyone else doesn’t, or perhaps the PBoC simply assumes that when Soros mentions “hard landing” and betting against Asian currencies in the same breath it probably means he’s short the yuan, but whatever the case, Chinese authorities have ramped up the rhetoric in the past several days.
“Reckless speculations and vicious shorting will face higher trading costs and possibly severe legal consequences,” Xinhua wrote over the weekend. “And just as proved in the yuan exchange rate case, the Chinese government has sufficient resources and policy tools to keep the overall economic situation under control and cope with any external challenges.”
The ironic thing about the latter passage there is that Soros actually echoed that sentiment in the interview China appears to be referencing. “China can manage it. It has resources and greater latitude in policies, with $3tn in reserves,” he said.
Of course China won't be able to arrest Soros and beat a confession out of him like Beijing is fond of doing to others suspected of launching "malicious" short attacks, but the brash commentary does indicate that Chinese authorities are becoming increasingly sensitive to suggestions that a steeper RMB devaluation is a foregone conclusion.
- From Zero Hedge
China threatens Soros -
I'm sure Soros is happy about it. They can't arrest him.
All they will do is try to save face by delaying the inevitable a little longer at a huge price!
Soros wouldn't try and break the RMB like he did the pound, but if he believes the economy is slowing in China then he'll be short because he knows rates have to go lower, and so the rest of the Asian currencies. the PBOC is therfore betting against themselves if they take the attitude of beating Soros...Weird....sounds like the jouro's need a lesson in economics
There are smart people in the world after all -
http://www.cnbc.com/2016/02/03/kyle-bass-china-banks-months-away-from-danger-territory.html
Yep.
Get ready for even more cheaper crap from China to hit our shores.
As for the Australian property market, will be interesting to see how all those Chinese Investors will settle on their newly built apartments in the coming year.
This may just be the turning point.
They'll never sell, they'd likely try and sell the mainland stuff first as they won't want to repatriate at a huge loss on the currency exchanges. So that would mean a bigger correction for the mainland and Hong Kong markets I reckon...
There are smart people in the world after all -
http://www.cnbc.com/2016/02/03/kyle-bass-china-banks-months-away-from-danger-territory.html
Yep.
History will show this period in China's history to one of the worlds greatest examples of a flawed fiat Ponzi scheme on a grand scale.
I still don't understand what is with the China bashing, maybe it is a Aussie thing, tall poppies and all.
Hasn't China been able to lift a huge population out of abject poverty?
Have they not been able to education a huge population?
Have they not been able to become a super power is a very short period of time?
What has Australia achieved in the last 30 years?
Sure they have made mistakes, but haven't we.
I still don't understand what is with the China bashing, maybe it is a Aussie thing, tall poppies and all.
Hasn't China been able to lift a huge population out of abject poverty?
Have they not been able to education a huge population?
Have they not been able to become a super power is a very short period of time?
What has Australia achieved in the last 30 years?
Give credit where credit is due.
Sure they have made mistakes, but haven't we.
There is no economic model that can take 1.5 billion (rural) people and give them a lifestyle like ours, sustainably. There won't be a transition to the fabled internal consumption model that wont rely on exports for growth as they are too poor to sustain that. They need to be complicit with the US to recycle US dollars around the trade network to keep the illusion of global growth going, all the while trying to rid themselves of something (dollars) that is losing value for them.“You can’t grow your banking system 1,000% in 10 years and not have a loss cycle. And your currency won’t stay strong when you go to rectify that balance,” he said. The hedge-fund manager said China’s banking system has ballooned to $34.5 trillion from 2005 to 2015. By comparison, China’s gross domestic product was $10.2 trillion, according to data from the World Bank.
Looking for concrete responses pls:
What are the primary mechanisms which citizens in China are using to circumvent capital account rules?
With China increasingly attempting to preserve reserve assets, how likely is it that these newer initiatives relating to FFX restrictions etc. will work and help stem outflow? [NB. Head of SAFE has dismissed the idea of capital controls proposed by Kuroda in the last few hours.]
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