Author: UYA

China thinks long-term on financial stability — so should we   [Copy link] 中文

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Post time 2018-8-2 04:02:53 |Display all floors
UYA Post time: 2018-7-31 14:24
"Investment" research groups?
When you talk "investments", your talking about capitalism.
I would  ...

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"BBC - The future of House of Fraser has been thrown into doubt after its potential new owner walked away from a rescue.

C.banner, which owns the toy store Hamley's, had planned to take control of the struggling department store chain and inject £70m of cash.

However, the Chinese firm said it would no longer proceed with its investment, plunging House of Fraser into crisis.

That deal would have involved closing 31 of its 59 stores, with the loss of 6,000 jobs."

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Post time 2018-8-2 04:09:49 |Display all floors
UYA Post time: 2018-7-31 14:24
"Investment" research groups?
When you talk "investments", your talking about capitalism.
I would  ...

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"NYtimes May, 2018 - At a time when deals between American and Chinese companies are on the rocks, an early example that united a major Wall Street deal maker with the Chinese government has come to an end.

China Investment Corporation, China’s sovereign wealth fund, has sold its stake in Blackstone Group, the American private equity giant, the latter said in a recent filing. The fund, known as C.I.C., did not disclose a reason for the sale, and neither side disclosed how big it was.

The sale ends an 11-year investment that seemed to presage a new era of economic relations between the two countries. It helped Stephen Schwarzman, Blackstone’s co-founder, become a major player in business and diplomatic circles between the two countries.

That era seems very much over.

Blackstone shares have gained 11 percent since their opening price when they were listed publicly. Blackstone says investors who have held shares over that time have more than doubled their money when dividends and other transactions are included."

Sounds like something Blackstone engineered for their own benefit in an era where business ties to China in the US are a total liability.

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Post time 2018-8-3 01:40:01 |Display all floors
TruismStrike Post time: 2018-7-31 23:44
China is communist?  Sounds like something someone who just came out of a block of ice from 1980 ...

I admit China has done well through capitalism.
But capitalism exists under communism.
The CPC can and will use its power to curb problems that unchecked capitalism causes.
If your saying China's economic policy is on "thin ice", we will see.

The outcome of this trade war, is being watched around the world.
I have confidence that China will end up on top.
Mostly because the measures in place by the CPC.

If this trade war proceeds for the long term.....
War will break out somewhere in the East.

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Post time 2018-8-3 01:41:59 |Display all floors
TruismStrike Post time: 2018-8-2 04:09
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"NYtimes May, 2018 - At a time when deals between American and Chinese companies are on the  ...

How much of these projects are "State owned"?
There is a big difference between State and Private investments.

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Post time 2018-8-4 00:49:29 |Display all floors
UYA Post time: 2018-8-3 01:41
How much of these projects are "State owned"?
There is a big difference between State and Private  ...

Enough that my response from yesterday that apparently went  into too much detail  it was censored.

Suffice to say the Chinese government has been spending record amounts overall; including aboard.

2/3 articles I posted 2 days ago were about poor government investments

And the news just keeps on coming in today; both articles from today:

Bloomberg, Aug 03. 2018
"China Dethroned by Japan as World's Second-Biggest Stock Market

China just lost its ranking as the world’s number two stock market.

After a Thursday slump, Chinese equities were worth $6.09 trillion, according to data compiled by Bloomberg. That compares with $6.17 trillion in Japan. The U.S. has the world’s largest stock market at just over $31 trillion.

China’s stock market overtook Japan’s in late 2014, then soared to an all-time high of more than $10 trillion in June 2015. Chinese equities and the nation’s currency have taken a beating this year amid a trade spat with the U.S., a government-led campaign to cut debt and a slowing economy.

Bloomberg, Aug 03, 2018
"China Dethroned by Japan as World's Second-Biggest Stock Market

Losing the ranking to Japan is the damage caused by the trade war," said Banny Lam, head of research at CEB International Investment Corp. in Hong Kong. "The Japan equity gauge is relatively more stable around the current level but China’s market cap has slumped from its peak this year."

The Trade War Is On: Timeline of How We Got Here and What’s Next

The Shanghai Composite Index has lost 17 percent in 2018 to be among the world’s worst performers. Industrial and tech stocks have been among China’s worst performers, with those subgauges on the CSI 300 Index of large caps sliding more than 20 percent this year."

Bloomberg, Aug 03. 2018
"China Steps In to Support Yuan

China stepped in to try to cushion the yuan after a record string of weekly losses saw the currency closing in on the key milestone of 7 per dollar.

The People’s Bank of China will impose a reserve requirement of 20 percent on some trading of foreign-exchange forward contracts, according to a statement on Friday evening. That will effectively make it more expensive to short the yuan, and is a tactic that the central bank used to stabilize the currency in the aftermath of its shock devaluation in 2015.

The change is aimed at preventing macro financial risks as the foreign-exchange market shows signs of volatility amid recent trade frictions, and shouldn’t be interpreted as a capital control, according to the PBOC."

Article goes on to talk about how 7 yuan to the dollar is the limit that the PBoC sees as the limit that would trigger capital flight and cause deeper losses on stocks.

So China's currency is already push back to its final defense line and the PBoC could end up burning through the other 1 trillion forex reserves it has propping it up like in 2015 in short order. Except this is a much wider issue than 2015.

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Post time 2018-8-5 03:13:12 |Display all floors
TruismStrike Post time: 2018-8-4 00:49
Enough that my response from yesterday that apparently went  into too much detail  it was censored ...

Chinese are savers, NOT really investors like in the west.
The stock market reflects that.
Chinese people save about 40% of income, compared to .04% in the US.
This could be the reason the stock market is not as wealthy.
Not sure the economic health of a nation, can or should be defined by the market.
After all, it was the Chinese economy that held the world together in the 2008 meltdown.
Seems to me that the more money floating around in "risk", would put in peril a countries economic stability.

China will get over this.

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Post time 2018-8-5 03:17:14 |Display all floors
TruismStrike Post time: 2018-8-4 00:49
Enough that my response from yesterday that apparently went  into too much detail  it was censored ...

Don't feel your posts are being "censored".
Do to the fighting on the CD, there is some verification going on.
It took a day or so, for some of my posts to be released.
(even though my status is elite)
"mere mortals" must be patient, till the CD calms down

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