I put more weight on China-based economist insider's view from Asian perspective, than outsiders' view from Western perspective
Don't panic about China's slowdown, Goldman says
(Feb 18): China’s growth is poised to decelerate this quarter and the road ahead will be bumpy. But don’t panic, says the most accurate forecaster on the nation’s economy.
Growth will slow to 6.7% in the first three months of this year as financial services contributes less to the expansion than a year ago and because policy measures to support growth have tapered off from the last quarter of 2015, says Song Yu, Beijing-based chief China economist at Goldman Sachs Gao Hua Securities Co. and the best overall forecaster of China’s economy according to Bloomberg Rankings for the past two years.
Even though full-year growth will drop to 6.4% in 2016 as wages, employment and consumption "take a hit," Song says he’s not negative about China’s economic prospects and dismisses dire predictions of a coming collapse.
"Some people are making extreme arguments to say the whole machine is not working," said Song. "That’s not what we see. Overall, the plane is moving in the direction it should be and it’s broadly under control."
This week, policy makers stepped up support for the economy, with the nation’s chief planning agency making more money available for local infrastructure projects, according to people familiar with the matter.
...
http://www.theedgemarkets.com/sg/article...ldman-says
The unique China way to solve the over-capacities. The shipbuilders have been consolidated from thousands to a few tenths in only a few years to clear the over-capacity. Now, coal mines have been consolidated in similar way, and steel industry will go thru the similar approach I reckon.
Which other country can solve similar massive issues in similar "effectiveness"?
China to close more than 1,000 coal mines in 2016: energy bureau
22 Feb 2016 17:46
[BEIJING] China will aim to close more than 1,000 coal mines over the course of this year, with a total production capacity of 60 million tonnes, as part of its plans to tackle a price-sapping supply glut in the sector, the country's energy regulator said.
...
REUTERS
Source: Business Times Breaking News
(22-02-2016, 08:55 PM)CityFarmer Wrote: [ -> ]The unique China way to solve the over-capacities. The shipbuilders have been consolidated from thousands to a few tenths in only a few years to clear the over-capacity. Now, coal mines have been consolidated in similar way, and steel industry will go thru the similar approach I reckon.
Which other country can solve similar massive issues in similar "effectiveness"?
China to close more than 1,000 coal mines in 2016: energy bureau
22 Feb 2016 17:46
[BEIJING] China will aim to close more than 1,000 coal mines over the course of this year, with a total production capacity of 60 million tonnes, as part of its plans to tackle a price-sapping supply glut in the sector, the country's energy regulator said.
...
REUTERS
Source: Business Times Breaking News
well they are not called "state owned enterprises" for nothing.
Communist leaders can do whatever they want to whoever they want...
Question is what happens to all the workers and bad credit on such a massive scale? Workers go back to farms? bad credit get hidden in their bad debts bank like Huarong?
(22-02-2016, 08:55 PM)CityFarmer Wrote: [ -> ]The unique China way to solve the over-capacities. The shipbuilders have been consolidated from thousands to a few tenths in only a few years to clear the over-capacity. Now, coal mines have been consolidated in similar way, and steel industry will go thru the similar approach I reckon.
Which other country can solve similar massive issues in similar "effectiveness"?
China to close more than 1,000 coal mines in 2016: energy bureau
22 Feb 2016 17:46
[BEIJING] China will aim to close more than 1,000 coal mines over the course of this year, with a total production capacity of 60 million tonnes, as part of its plans to tackle a price-sapping supply glut in the sector, the country's energy regulator said.
...
REUTERS
Source: Business Times Breaking News
I heard that the Chinese airlines don't order planes to boeing/airbus individually... the govt to order planes for them in a combined way... more bargaining power (due to larger quantity) ... and also give impression that Chinese are buying large quantity of imports from US/Europe (the press release is everywhere ... ) ... truly Chinese way of doing things more effectively too
dictatorship has its benefit too, I guess
They are also closing small coal power plants (capacity less than 200Mw) in the next few years... replacing them with more efficient mega-scale plants, nat gas plant, co-gen plants and nuclear ... not to mention the progress they are making in wind power/solar (china dwarfs USA is wind power installation).
Their leaders think long term.
Currency war is a lose-lose game...
China seeks to reassure trade partners on yuan ahead of G20
SHANGHAI — Chinese policymakers have ruled out an imminent devaluation of the yuan as they seek to reassure trading partners ahead of the G20 summit that they can manage market stability while driving structural reforms, with renewed volatility in stocks casting a shadow on the talks.
The China Daily newspaper yesterday quoted Chinese Finance Minister Lou Jiwei as saying that a proposal to devalue the yuan was not on the G20 summit agenda. Vice-Finance-Minister Zhu Guangyao added that China would seek to keep the exchange rate stable while maintaining its current managed float regime.
“We do recognise the risk the global economy faces. As the world’s second-largest economy, we understand our policies have a spill-over effect —that’s a fact. This is why we have good communication and good policy coordination ... We also understand how important it is to correctly communicate with the market,” said Mr Zhu at a conference held by the Institute of International Finance linked to the G20 summit.
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http://www.todayonline.com/business/chin...-ahead-g20
The highway leading to the birthplace of Mao Zedong in central China is lined with forests of half-built or empty apartment towers.
On your way to pay homage to the Great Helmsman, you can visit the spot where, less than three years ago, an ambitious local billionaire flew in on his private helicopter amid great fanfare and broke ground on what was meant to be the world’s tallest building: The 838m Sky City.
Today the excavated foundations lie submerged in a makeshift fishfarming pond.
http://www.todayonline.com/commentary/ch...h-foretold
I rmb that skyscrapper fondly, it was boasted that it would be built in record time as well using new construction techniques. Now I wonder will it even be kickstarted
IMO, offical data has not shown how severe the downturn is, but on ground sights will show you just how bad it is. Similar to some companies we know, who will never impair their bad loans/investments until they are forced to do so. As investors, it is a timely reminder for us to always do our own due dilligence and not believe too much in balance sheets.
http://www.bbc.com/news/resources/idt-3c...fda5015115