China Economy: News & Discussion

[amoy]

China Moves To Approve At Least 35 Trump Trademarks
The approvals underline the complexities and potential concerns over conflicts of interest facing the president.

AFP VIA GETTY IMAGES
The Trump International Hotel and Tower in Vancouver

• SHANGHAI/WASHINGTON, March 9 (Reuters) - China has granted preliminary approval for at least 35 trademarks linked to Donald Trump, documents on China’s state trademark office show, giving the U.S. President and his family protection were they to develop the “Trump” brand in the market.

The trademarks, all variations in English and Chinese on the name “Donald Trump,” were given preliminary approval in two lists published on the Trademark Office of the State Administration for Industry and Commerce on Feb. 27 and Monday.

The approvals underline the complexities and potential concerns over conflicts of interest facing President Trump, who has a sprawling business empire from hotels to apparel using the Trump name around the world.

Trump, a wealthy real estate developer, has previously said he has handed over his business interests to a trust overseen by one of his sons and a Trump Organization executive. He can, however, revoke the trust at will and, as its sole beneficiary, remains linked to it financially.

The new trademark approvals cover such businesses as branded spas, massage parlors, golf clubs, hotels, insurance, finance and real estate companies, retail shops, restaurants, bars and bodyguard and escort services.

The 35 trademarks, which Trump’s lawyers applied for in April last year, are registered to “Donald J. Trump” and listed to the address of Trump Tower on Fifth Avenue in New York.

The Associated Press earlier reported the approvals of the trademarks, which it said also included three further trademarks not directly registered in the President’s name. These related to Scion, a hotel brand Trump’s sons want to expand in the United States. Reuters could not immediately confirm the three further approvals.

Representatives for the Trump Organization did not immediately respond to a request for comment.

Trump’s personal ties between politics and business have prompted concern from politicians and rights groups who say the President could face potential conflicts of interest related to the extensive business affairs of his family.

Democratic Senator Ben Cardin, the ranking member on the U.S. Senate Foreign Relations Committee, called for the Departments of State, Commerce and Justice to brief Congress on the Chinese trademark approvals and on “the potential constitutional dangers that they present.”

“This is an astonishing development ... It’s clear to me that officials in Beijing have come to appreciate the potential return on investments for China in having a positive, personal business relationship with the President of the United States,” Cardin said in a statement.

Cardin has previously introduced a resolution demanding Trump cut his ties with the Trump Organization or risk violating the Emoluments Clause of the Constitution, which bars public servants from accepting anything of value from foreign governments unless approved by Congress.

The preliminary approvals are open to be challenged for around a 90-day period from the date of approval. If no objections they will be formally registered in late May and early June respectively.

Trump received a single trademark approval last month in China for Trump-branded construction services, following a 10-year legal battle. (Reporting by Adam Jourdan in SHANGHAI and Eric Walsh in WASHINGTON; Editing by James Dalgleish and Lincoln Feast)

 

[Superdefender]

A Mountain of Debt: Is China's Economy Going To Crash?

Anthony Fensom
Mar 13, 2017


China bears have had their fears reconfirmed over the nation’s mountainous debt by none other than the nation’s central bank governor. Is the world’s second-biggest economy heading for a crash?
On Friday, People’s Bank of China Governor Zhou Xiaochuan confessed to reporters that “non-financial corporate leverage is too high. First of all, (the debt levels of) every business, especially those with leverage that already is too high, have to be controlled."
The communist-ruled giant’s credit binge has taken total debt from around 150 percent of gross domestic product before the 2008 global financial crisis, to more than 260 percent currently.
Zhou’s deputy, Yi Gang, said the growth in leverage “isn’t conducive to the sustainable development of the economy and accumulates certain risks.”
Beijing plans to help restructure firms with excessive debt burdens, while also continuing to purge excessive industrial capacity. Zhou suggested support would be withdrawn for the infamous “zombie” companies, financially unviable firms surviving only on credit.
Nevertheless, the central bank boss said the process of deleveraging would not happen overnight.
“I personally think this process is relatively medium term. It won’t have very obvious results in the short term because the existing stock [of debt] is very large,” he said.
Zhou also said while measures by local governments to cool house prices would have some effect, housing loans would continue to grow quickly.
In February, China’s money supply continued to expand at a double-digit pace, with new yuan loans remaining high as banks continued to ramp up mortgage and infrastructure loans. M1, a measure of money supply, expanded by 21 percent compared to market expectations for a 16 percent rise, while the M2 money supply measure rose by 11 percent.
“Despite the government’s explicit call for deleveraging last year, credit continues to expand at a pace faster than nominal GDP growth. Specifically, rapid growth in property-related lending is increasing the concentration risk on bank balance sheets and could potentially increase instability in the financial system,” ANZ Research said in a February 17 report.
The Australian bank’s economists also pointed to the growth in so-called “shadow banking,” which reached 26 trillion yuan ($3.8 trillion) in June 2016.
“Besides the absolute size, we are also concerned with the growing interconnectedness between banks and non-bank financial institutions through the selling of wealth management products. These products are not only off-balance sheet items but also carry considerable credit risk,” the economists said.
“While household debt in China is still below 50 percent of GDP, the rise of around 15 percentage points since 2010 bears close monitoring,” they added.
U.S.-style crash?
U.S. billionaire investor George Soros has noted an “eerie resemblance” between conditions in China and those in America leading up to the 2008 financial crisis.
“It’s similarly fueled by credit growth and an eventually unsustainable extension of credit,”
he told the Asia Society last April.
Soros is not alone in ringing the alarm bell. BlackRock’s CEO Laurence Fink has also warned investors to be worried, while Goldman Sachs has reported that China’s shadow banking sector raised concerns about its “underlying credit problems and sustainability risk.”
According to Bloomberg Intelligence, corporate debt has seen the biggest increase, rising over the ten years to 2015 by 60 percentage points to reach 165 percent of GDP. Household debt climbed to more than 40 percent of GDP, up 23 percentage points, while government borrowings reached 22 percent of the economy.
However, the financial news service said China’s household debt is yet to reach crisis point. At its 2007 peak, household debt in the United States reached almost 100 percent of GDP as individual borrowers speculated on real estate and other debt-fueled assets.
Chinese household savings were almost twice as large as their debt burden at the end of 2015, with most residential properties typically purchased with significant down payments.
Instead, the highly indebted corporate sector is seen as the main risk, particularly those with significant U.S. dollar borrowings, as leveraging rises while profitability falls. China’s bond market has shown increasing signs of distress, with almost triple the number of defaults in 2016 compared to the previous year.
According to the Economist, around two-fifths of new debt is now swallowed up by interest on existing loans. It now takes nearly four yuan of new borrowing to generate one yuan of additional GDP, up from just over one yuan of credit before the financial crisis.
Financial crisis
In an October 2016 paper, International Monetary Fund researchers pointed to a high 20–25 percentage point “credit gap” in China, “comparable to countries that experienced painful deleveraging, such as Spain, Thailand, or Japan.”
According to the researchers, a credit gap above 4 percent “is a good predictor of financial crisis.” Similar credit booms have ended up in “either a financial crisis or a significant growth slowdown, or both,” they added.
The probability of a crisis increases if a credit boom lasts longer than six years, starts at a higher level of financial depth and develops faster. China meets all three criteria, the researchers stated.
While Beijing has moved to pursue capacity reduction in the coal and steel sectors, deal with 345 “zombie” firms and boost efficiency at state-owned enterprises, the IMF researchers suggest a more comprehensive strategy is required, including imposing moral hazard and improving corporate governance.
However, China’s leaders are seeking to prop up growth to ensure “social stability,” reluctant to tackle SOE and other reforms too seriously for fear of sparking unrest.
At its latest National People’s Congress, the ruling Communist party cut its growth target for 2017 to “around 6.5 percent,” down from last year’s 6.7 percent expansion, which was its slowest growth rate in twenty-six years.
Critics suggest the actual growth rate is much lower, with regional provinces having previously admitted faking data.
According to London-based consultancy Capital Economics, China’s GDP slumped from 6 percent at the end of 2014 to around 4 percent, only improving after last year’s massive stimulus by Beijing. It sees the growth rate fluctuating between 4.5 and 5 percent in 2017, depending on the authorities’ actions.
China’s ability to manage its debt issues will be crucial, if Asia and the rest of the world are to avoid the damaging side effects.
As warned by the Economist : “The damage from a big Chinese credit blow-up would still be immense. China is the world’s second-biggest economy; its banking sector is the biggest, with assets equivalent to 40 percent of global GDP.
“Its stock markets, even after last year’s crash, are together worth $6 trillion, second only to America’s. And its bond market, at $7.5 trillion, is the world’s third-biggest and growing fast. A mere 2 percent devaluation of the yuan last summer sent global stock markets crashing; a bigger bust would do far worse.”
Governor Zhou was reportedly “in a very good mood, smiling and engaging with the deputy governors beside him as well as news journalists” at the recent press conference. Keeping that smile may prove far harder though in the year ahead.

Source Link: http://nationalinterest.org/feature/mountain-debt-chinas-economy-going-crash-19770?page=show

 

[SexyChineseLady]

If you look at the criteria of markets, China is already the largest economy in world and by a good margin too.

In practically everything -- cars, ships, cement, steel, computers, cellphones, pork, wheat, etc. -- China consumes far more. To consume more than the other person, you need to have more money, more income than the other person.

 

[tharun]

Drone footage of rusting chinese shipyards

 

[Villager]

China Executes Most People in 2016, Iran and Pakistan On List Too

China's local media reports say at least 931 people were executed between 2014 and 2016. (AFP)

Beijing: China executed more people in 2016 than all other nations combined, Amnesty International said Tuesday, even as death penalties in the world decreased overall.

The human rights organisation estimates the Asian giant alone killed "thousands" of people, a figure based on examinations of court records and news reports.

All other countries together executed at least 1,032 people last year -- a decline of 37 percent compared to 2015. Of those, 87 percent took place in just four countries - Iran, Saudi Arabia, Iraq and Pakistan.

Amnesty's report found that hundreds of death sentences, including cases involving foreign nationals, had been omitted from China's public database of court verdicts, suggesting a concerted effort to hide the extent of the country's killings.

The ruling Communist Party considers the death toll a state secret.

"China is really the only country that has such a complete regime of secrecy over executions," Amnesty's East Asia director Nicholas Bequelin said at a press conference in Hong Kong.

"Probably the reason is the numbers are shockingly high, and China doesn't want to be a complete outlier in the world," he said.

Despite local media reports saying at least 931 individuals were executed between 2014 and 2016, only 85 of them were in the online database, Amnesty said.

In 2013, China's Supreme People's Court ruled that legal judgements should be made public, but the decision included many exceptions, including cases involving "state secrets" or personal privacy.

Previous estimates from other rights groups also put the number of annual executions in China in the thousands.

Chinese courts have a conviction rate of 99.92 percent, and concerns over wrongful verdicts are fuelled by police reliance on forced confessions and the lack of effective defence in criminal trials.

The nation's top judge, Zhou Qiang, apologised in 2015 for past miscarriages of justice and said mistakes must be corrected.

In December 2016, a Chinese court cleared a man executed 21 years ago for murder, citing insufficient evidence in the original trial.

However experts say recent reforms have not been widely implemented.

"For example, coerced confessions are supposed to be excluded from evidence. In practise, however, the police have unchallenged discretion to...extract confessions by detaining and torturing suspects for long periods," New York University professor Jerome Cohen told AFP.

"Yet even the late Communist Party Chairman Mao Zedong, perhaps the greatest executioner in human history, recognised the likelihood of mistakes when imposing the death penalty," Cohen noted.

"Mao admonished his officials to bear in mind that, once someone's head is cut off, it cannot grow back."

A 2016 report from the US-based Dui Hua Foundation said China's average death row prisoner waits only two months for execution.

Only a handful of countries still use the death penalty with regularity.

The United States executed 20 last year, the lowest figure for the country since 1991.

 

[HariPrasad-1]

China Executes Most People in 2016, Iran and Pakistan On List Too

China's local media reports say at least 931 people were executed between 2014 and 2016. (AFP)

Beijing: China executed more people in 2016 than all other nations combined, Amnesty International said Tuesday, even as death penalties in the world decreased overall.

The human rights organisation estimates the Asian giant alone killed "thousands" of people, a figure based on examinations of court records and news reports.

All other countries together executed at least 1,032 people last year -- a decline of 37 percent compared to 2015. Of those, 87 percent took place in just four countries - Iran, Saudi Arabia, Iraq and Pakistan.

Amnesty's report found that hundreds of death sentences, including cases involving foreign nationals, had been omitted from China's public database of court verdicts, suggesting a concerted effort to hide the extent of the country's killings.

The ruling Communist Party considers the death toll a state secret.

"China is really the only country that has such a complete regime of secrecy over executions," Amnesty's East Asia director Nicholas Bequelin said at a press conference in Hong Kong.

"Probably the reason is the numbers are shockingly high, and China doesn't want to be a complete outlier in the world," he said.

Despite local media reports saying at least 931 individuals were executed between 2014 and 2016, only 85 of them were in the online database, Amnesty said.

In 2013, China's Supreme People's Court ruled that legal judgements should be made public, but the decision included many exceptions, including cases involving "state secrets" or personal privacy.

Previous estimates from other rights groups also put the number of annual executions in China in the thousands.

Chinese courts have a conviction rate of 99.92 percent, and concerns over wrongful verdicts are fuelled by police reliance on forced confessions and the lack of effective defence in criminal trials.

The nation's top judge, Zhou Qiang, apologised in 2015 for past miscarriages of justice and said mistakes must be corrected.

In December 2016, a Chinese court cleared a man executed 21 years ago for murder, citing insufficient evidence in the original trial.

However experts say recent reforms have not been widely implemented.

"For example, coerced confessions are supposed to be excluded from evidence. In practise, however, the police have unchallenged discretion to...extract confessions by detaining and torturing suspects for long periods," New York University professor Jerome Cohen told AFP.

"Yet even the late Communist Party Chairman Mao Zedong, perhaps the greatest executioner in human history, recognised the likelihood of mistakes when imposing the death penalty," Cohen noted.

"Mao admonished his officials to bear in mind that, once someone's head is cut off, it cannot grow back."

A 2016 report from the US-based Dui Hua Foundation said China's average death row prisoner waits only two months for execution.

Only a handful of countries still use the death penalty with regularity.

The United States executed 20 last year, the lowest figure for the country since 1991.

And India executed 3 people since 2001. This is the difference between a civilized nation and a rogue dictatorship. In addition to execution, chinese armed forces kill many people without proper reason.

 

[amoy]

$17 Billion Causeway Linking Hong Kong, Macau and Chinese Mainland Nears Milestone
By Yang Yanwen and Yang Ge

The Zhuhai section of the Hong Kong-Zhuhai-Macau Bridge in Zhuhai, Guangdong province, China on Dec. 27, 2016. The bridge is on track to reach a major milestone later this year with the completion of the Hong Kong portion. Photo: IC

(Beijing) — A $17 billion bridge that could charge up the Pearl River Delta economies of Hong Kong, Macau and the sleepy mainland city of Zhuhai is on track to reach a major milestone later this year, when the Hong Kong portion of the massive project is expected to be complete.

That assessment came on Thursday from officials at the Hong Kong Highways Department, who said the Hong Kong section of the bridge linking the two special administrative regions with the scenic mainland city of Zhuhai should be complete by the end of this year. That could put the complex project on track to finally open by 2020, after running years behind schedule and costing well over its original budget.

When it does open, the bridge could be a game-changer for the region, providing a key link enabling manufacturers to move to the cheaper western side of the Pearl River Delta from their current eastern-bank locations where costs are soaring in cities like Shenzhen and Dongguan. That could result in a renaissance for factories in an area that gave China its earliest moniker as “Workshop of the World.”

“This is a relatively significant bridge,” said Christopher Balding, an economics professor in the HSBC Business School at Peking University Shenzhen. “There are still areas where it’s feasible to do low- and medium-end manufacturing in the area, but they have to be out of Shenzhen. The bridge would be a way for manufacturers to locate out of Shenzhen, and still access their suppliers.”

In its latest update, the road authority said precast liner segments were nearly all in place for a tunnel that forms a key part of the Hong Kong part of the project, and that necessary connections were made to an elevated expressway at the end of March. That led officials to say that the entire 12 km Hong Kong section of the project should be linked up by the end of this month.

Upon completion, the overall project will include three lanes in either direction, spanning 55 km with a series of roads and bridges, with artificial islands constructed at its two main terminals. Construction for the project began in 2011 and carried an original price of about $10.6 billion, with a target completion date of last year. But delays and overruns have pushed its latest cost up to $17 billion or more, and an official from Guangdong province was quoted in 2015 saying even 2020 could be an optimistic opening date.

When it finally is complete, the bridge could reduce travel times between the eastern and western sides of the Pearl River Delta from as much as four hours now to as little as a half hour.

The bridge is part of a broader effort to integrate the entire Pearl River Delta area, similar to efforts now underway in the Yangtze River Delta around Shanghai and an emerging similar zone around Beijing. The planned area centered on Beijing saw a new twist last week, when the central government announced a major new urban center being set up in a three-city area known as Xiongan about 100 km south of Beijing in Hebei province.

In the Pearl River Delta, the regional integration also includes building a section of high-speed rail to link up Hong Kong with China’s state-of-the-art bullet train network. It also includes a commuter-style express rail link connecting the cities of Hong Kong, Shenzhen and Guangzhou, capital of Guandong province, which is nearing completion.

Balding said the entire Pearl River Delta area that could eventually be included in an emerging South China zone is home to as many as 75 million people, bigger than most countries and roughly equivalent to the entire population of Germany.

“In reality there’s a very real need to integrate all these cities,” said Balding. “One of the things you do see (from Hong Kong and Macau) is an acceptance of the economics that, ‘Look we’re increasingly tied to the mainland economically and financially.’ The softer issue is (central leaders in Beijing) want to continue to draw Hong Kong into the cultural and infrastructure orbit of the mainland. So there’s hard and soft objectives they’re trying to achieve here.”

 

[amoy]

US approves ChemChina's $43 bn takeover of Syngenta
AFP News April 5, 2017

Syngenta said in February it expects the transaction with ChemChina to close in the second quarter; it would mark the largest overseas takeover by a Chinese firm

US antitrust regulators approved ChemChina's $43 billion takeover of Swiss pesticide and seed giant Syngenta after they agreed the Chinese company must sell three products, the Federal Trade Commission said.

The deal would mark the largest foreign takeover by a Chinese firm.

Under a preliminary settlement, the FTC said it required the divestitures to address a loss of competition over the herbicide paraquat and two other products in which the merger would have likely led to higher prices for consumers.

The US federal agency said the deal, as originally proposed, created antitrust problems because ChemChina's generics subsidiary ADAMA is either the first- or second-largest generics supplier in the United States for the three products in question.

The other two products are the insecticide abamectin, which protects primarily citrus and tree nut crops, and the fungicide chlorothalonil, which protects peanuts and potatoes.

"Without the proposed divestiture, the merger would eliminate the direct competition that exists today between ChemChina generics subsidiary ADAMA and Syngenta's branded products," the FTC said.

"The merger would also increase the likelihood that US customers buying paraquat, abamectin and chlorothalonil would be forced to pay higher prices or accept reduced service for these products."

The FTC said it worked with its counterparts in Australia, Canada, the European Union, India and Mexico "to analyze the proposed transaction and potential remedies."

The FTC's settlement is subject to public comment for 30 days after which the commission will determine whether to finalize it.

Syngenta said in February it expects the transaction with ChemChina to close in the second quarter.

The deal is just one of several huge takeovers in the agro-chemical sector that regulators are grappling with, with German giant Bayer offering $66 billion for US firm Monsanto, which in 2015 had tried to acquire Syngenta for $46 billion.

US giants DuPont and Dow Chemical are also merging in a $130 billion deal.

Last week, DuPont said it will sell some of its pesticide business to Philadelphia-based chemical company FMC to clear regulatory hurdles.

The European Commission had ruled that the merger could go ahead if DuPont divested "major parts" of its global pesticides business due to antitrust concerns.

In exchange, DuPont will receive the health and nutrition business from FMC along with $1.6 billion in cash and working capital.

 

[amoy]

134 metro cars for Boston in second deal

CRRC Massachusetts employees to train in China

CRRC MA employees pose for a group photo at Bradley International Airport.(Photo/CRRC's official WeChat account)

In August 1872, 30 Chinese children were selected by the government of the Qing Dynasty (1644-1912) to take part in Chinese Educational Mission, based in the United States. Participants included a pioneering Chinese rail engineer, named Zhan Tianyou, who was known as the "Father of China's Railroad".

Zhan, alongside the other children selected, arrived in Springfield a month after being chosen. Springfield is a city in western New England, based in the US state of Massachusetts.

Since then, 145 years later - on April 7, 2017 - 33 employees from the Springfield-based rail car builder, China Railway Rolling Stock Corporation (CRRC) Massachusetts (MA), prepared to travel to China for three months of technical training and departed the Bradley International Airport.

Their destination was CRRC Changchun Railway Vehicles Co Ltd, based in Changchun city of the northeastern Jilin province.

The group, CRRC, is currently China's largest high-speed rail car maker, which launched an assembly line in Springfield last September.

According to a report from Xinhua, the company is set to assemble 284 subway cars in Springfield, which will replace the aging fleets of red and orange lines, connecting Cambridge to downtown Boston by 2023.

CRRC employees, who have already learned the basics of spoken Chinese, will be assigned to different workshops to practice their learning, after being technically trained and taught the company's corporate culture.

Since it was formed in 2015 by the merger of China's top two trainmakers, CRRC has been aggressively chasing overseas orders and deals. The company said the total value of orders from abroad surged by 40 percent year-on-year to $8.1 billion in 2016.

Last month, CRRC announced it would build 64 subway cars for the Los Angeles Metro Rail – an order worth up to $647 million.

The order follows another company win, scoring a $567 million Boston contract in 2014, and another bid worth $1.3 billion in 2016, building rail cars for Chicago.

Ground breaking in Springfield MA for CRRC's manufacturing base in Sept., 2015

Chicago rail cars designed and built by CRRC

 

[tharun]

China building one more city named Xiongan with 290$ Billion.
There are many ghost cities and still building new cities and sez's.
Who is building all these cities private companies or govt?
Govt says it debt is less than 30% of GDP..how much is that true?

 

[Screambowl]

China building one more city named Xiongan with 290$ Billion.
There are many ghost cities and still building new cities and sez's.
Who is building all these cities private companies or govt?
Govt says it debt is less than 30% of GDP..how much is that true?

very true
they are Chinese
not samosa chai ghanchakker and politicians like us.

we should learn from them.

 

[ezsasa]

China building one more city named Xiongan with 290$ Billion.
There are many ghost cities and still building new cities and sez's.
Who is building all these cities private companies or govt?
Govt says it debt is less than 30% of GDP..how much is that true?

In china cities themselves are allowed to raise money thru bonds which are guaranteed by Chinese central banks. during the last decade at the peak of construction , some cities were raising 200-300 billion dollars.

I donno how these bonds are repaid if people don't buy the real estate in the newly constructed cities.

One thing is certain, building new cities is a Chinese way increasing GDP numbers.

 

[amoy]

In china cities themselves are allowed to raise money thru bonds which are guaranteed by Chinese central banks. during the last decade at the peak of construction , some cities were raising 200-300 billion dollars.

I donno how these bonds are repaid if people don't buy the real estate in the newly constructed cities.

One thing is certain, building new cities is a Chinese way increasing GDP numbers.

No, gvmts at cities or municipalities or provincial levels in China are not authorized to issue bonds themselves (maybe with exceptions like for SEZs).

Those real estates are built by private or public enterprises, not by local govmts through bonds like u assume. However, local govmts WERE encouraging such investment, since they benefitted from tax revenue and land sales.

In a market economy (in whatever forms) govmt doesn't directly operate businesses. Instead they may set up their special purpose vehicles (SPV) with a major shareholding, which in turn may apply for bank loans or issue commercial bonds.

As for GDP, Chinese cities are ahead of India not in numbers, but also in quality, by ages.

 

[ezsasa]

No, gvmts at cities or municipalities or provincial levels in China are not authorized to issue bonds themselves (maybe with exceptions like for SEZs).

Those real estates are built by private or public enterprises, not by local govmts through bonds like u assume. However, local govmts WERE encouraging such investment, since they benefitted from tax revenue and land sales.

In a market economy (in whatever forms) govmt doesn't directly operate businesses. Instead they may set up their special purpose vehicles (SPV) with a major shareholding, which in turn may apply for bank loans or issue commercial bonds.

As for GDP, Chinese cities are ahead of India not in numbers, but also in quality, by ages.

My opinion is based on articles like these.

https://www.ft.com/content/b303f280-7f14-11e6-8e50-8ec15fb462f4

On the point of GDP, china has a 20 years head start on infra development. So it's ok, who know what's going to be the situation 10 years from now.

 

[amoy]

China building one more city named Xiongan with 290$ Billion.
There are many ghost cities and still building new cities and sez's.
Who is building all these cities private companies or govt?
Govt says it debt is less than 30% of GDP..how much is that true?

To be precise, Xiong'an sounds more like an addendum to the existing capital Beijing.

Beijing has be come over congested and gigantically overloaded. Hence China wants to spread out some functions of the capital to neighboring Xiong'an, perhaps universities, hqtrs of some conglomerates etc...

Similar to countries like S.Korea, who also relocated some govmental organs /institutions to a new city called Sejoeng, years ago from Seoul which is said to hold around 1/4 of the country's population.

As for debt ratio, u need to look at the base GDP, which is 4x India's, as well as foreign reserve. Also one more important factor, China's land is theoretically ALL state owned.

And seriously have u verified the number 290b $? At least with some common sense, like converting to rupees for an idea?

 

[Indx TechStyle]

China building one more city named Xiongan with 290$ Billion.
There are many ghost cities and still building new cities and sez's.
Who is building all these cities private companies or govt?
Govt says it debt is less than 30% of GDP..how much is that true?

I read somewhere that China's debt was 260% of GDP, around $28 trillions but at same time, China has a surplus capital, FDI & itself giving loans to refill it.

very true
they are Chinese
not samosa chai ghanchakker and politicians like us.

we should learn from them.

What happened? Did some brit again masturbated for their new massa in front of you?

As for GDP, Chinese cities are ahead of India not in numbers, but also in quality, by ages.

:biggrin2:

 

[tharun]

As for debt ratio, u need to look at the base GDP, which is 4x India's, as well as foreign reserve. Also one more important factor, China's land is theoretically ALL state owned.

I'm not talking about your GDP, what i'm talking about is the debt books that are cooking inside your country.No one knows how much debt in which chinese govt drowning.

And seriously have u verified the number 290b $? At least with some common sense, like converting to rupees for an idea?

No i haven't verified the number because i don't have Xi's phone number..the number is based on bloomberg article.

 

[lcafanboy]

Moody's downgrades China's credit ratings

Image copyrightGETTY IMAGES
China's credit rating has been cut over fears that growth in the world's second-biggest economy will slow in the coming years.

Moody's, one of the world's big three ratings agencies, cut China by one notch from A1 to Aa3.

It was the first time the agency has downgraded the country since 1989.

China's finance ministry said Moody's was exaggerating the mainland's economic difficulties and underestimating reform efforts.

The downgrade could raise the cost of borrowing for the Chinese government.

The ratings agency also changed its outlook for China to stable from negative.

Moody's said that the downgrade reflected expectations that China's financial strength would "erode somewhat over the coming years, with the economy-wide debt continuing to rise as potential growth slows".

The Chinese economy expanded by 6.7% in 2016 compared with 6.9% the previous year, the slowest growth since 1990.

Analysis

Image copyrightGETTY IMAGES
By Karishma Vaswani, Asia business correspondent
This is the first time that Moody's has cut its investors ratings on Chinese debt in more than a quarter of a century, so it is pretty significant.

However, it is not the first time that international institutions have sounded alarm bells about China's rising debt levels. They have been going off for the past few years.

What this ratings downgrade on China's debt boils down to is whether you believe the Chinese government has the ability to write off this debt. Does Beijing somehow have an ability to extend infinite credit lines, or at least reduce debt levels? And can it do so while trying to maintain strong economic growth figures?

Moody's has obviously come down on the side of the naysayers.

In its statement it points to slowing Chinese growth and rising debt levels to keep the economy expanding. It also says that reforms may take a backseat to growth priorities.

Remember: this is a critical time for President Xi Jinping, who faces a key political congress towards the end of the year. A strong economy gives him credibility and legitimacy - and China observers tell me that the perception of stable growth is crucial for him at this time.

This is why negative assessments from international financial institutions such as Moody's on Chinese debt are unlikely to go down well in Beijing.

China's debt stands at something like 260% to GDP. Higher debt levels usually mean a higher level of risk.

But it is worth noting that most of this debt is held by Chinese state-owned enterprises or "quasi-state" like entities - not international investors - so it is less likely to have a spillover effect into other economies.

All the same, as the world's second-largest economy, what happens in China matters to the rest of the world.

China's impact on global economy

China is the world's second-biggest importer of both goods and services.

It also plays an important role as a buyer of oil and other commodities, and its slowdown has been a factor in the decline in the prices of such goods.

Beijing's aim to rebalance the economy towards domestic consumption has led to major challenges for manufacturers, and there have been layoffs - especially in heavily staffed state-run sectors such as the steel industry.

The downgrade comes as Beijing tries to clean up its lending practices, which have been viewed as a threat to financial stability.
http://www.bbc.com/news/business-40024503

 

[lcafanboy]

China downgraded by Moody's for first time since 1989 – business live
https://www.theguardian.com/busines...dys-ecb-mario-draghi-dollar-fed-business-live

So, now it is MOODY's turn to get fried by Lizard Midea.

 

[lcafanboy]

China rejects ‘inappropriate’ credit downgrade, says it ‘exaggerates difficulties’

• China has rejected Moody's credit downgrade.
• The finance ministry says the decision exaggerates the country's problems and underestimates its reform agenda.

Karen Gilchrist | @_karengilchrist
1 Hour AgoCNBC.com
16
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Moody's downgrade confirms what we know about China's debt: Strategist 3 Hours Ago | 03:13
China has rejected a move by Moody's to lower its credit rating, saying the downgrade exaggerates the difficulties facing the economy and underestimates the government's reform agenda.

The country's finance ministry claimed the credit rating agency used "inappropriate methodology" in its decision to lower long-term local and foreign currency issuer ratings from "Aa3" to "A1".

"Moody's views that China's non-financial debt will rise rapidly and the government would continue to maintain growth via stimulus measures are exaggerating difficulties facing the Chinese economy," the finance ministry said in a statement Wednesday, translated by Reuters.


It added that the moves are "underestimating the Chinese government's ability to deepen supply-side structural reform and appropriately expand aggregate demand."



China ratings downgrade 'has no major impact' 5 Hours Ago | 01:42
Moody's said that the downgrade reflects its expectation that China's financial strength will "erode somewhat" over the coming years.

The one-notch downgrade marks the first time Moody's has lowered China's credit rating in almost 30 years. It last downgraded the country in 1989.

It comes as the government moves ahead with its ambitious reform agenda, which it hopes will move the country away from its traditional dependence on manufacturing and towards a services-led economy.

Moody's argues, however, that these aims will be hampered somewhat by the country's "economy-wide debt", which it says is set to rise as economic growth slows.

Though the new rating will likely modestly increase the cost of borrowing for the Chinese government, it remains within the investment grade rating range.

http://www.cnbc.com/2017/05/24/chin...wngrade-says-it-exaggerates-difficulties.html