China in Recession

Discussion in 'China' started by Armand2REP, May 25, 2012.

  1. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    HSBC China May PMI falls to 48.7 from April reading of 49.3

    The May reading marks the seventh straight month the index has been in contractionary territory. A reading below 50 indicates contraction from the previous month, while anything above that indicates growth.

    7 months... recession. :laugh:
     
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  3. satish007

    satish007 Senior Member Senior Member

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    you know nothing about China , China have lot of money(although Chinese are poor), China just do not want go too fast which will make all countries's envy. BTW, China is spending all around the world , doing responsiabiltly, giving contrubution to world recovery, shut you disgusting mouth up, or we will not buy your LV anymore.
    unlike you, I give my congratulation to French or any country is doing well.
     
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  4. LTE-TDD

    LTE-TDD Regular Member

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    This guy's IQ is great, he define 8% GDP as recession!
     
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  5. satish007

    satish007 Senior Member Senior Member

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    well, compare to Franch, they get better increase (0.6%) than expectation(0.3%) in 2012, so the ARM2ERP is very high,
    but we should give congrabution to the ARMEPR and donot care about if he is French or India or 1/4 india, 1/4 french ,1/2 russia.
    save Greece , ARM2ERP, you guys have more spare money
     
  6. Ray

    Ray The Chairman Defence Professionals Moderator

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    Is China really in recession?

    I thought it has merely slowed down a bit!
     
  7. kickok1975

    kickok1975 Stars and Ambassadors Stars and Ambassadors

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    Recession happens when GDP growth falls negatively in at least two consecutive quarters. PMI is Purchasing Manager Index which mainly measures manufacturing’s future confidence level, not entire economy. China’s economy is slowing down but certainly not in recession. Looks like you would be thrilled if China goes to recession. But I can tell you the chance is slim and if it indeed happens, it won’t be good for world economy except for a few narrow-minded people.
     
    Last edited: May 25, 2012
  8. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    We all know China cooks the books so GDP figures are meaningless. For an economy that is based on manufacturing and residential construction, the PMI and realestate markets tell the true story.
     
  9. badguy2000

    badguy2000 Respected Member Senior Member

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    well, the economy here doesn't look good indeed....
    businessmen complained to me often...

    but CHinese government has lots of leverages to balance economy...
    Until now, CHinese government still brakes the conomy.
    if Chinese government change its idea and change its brake policy,the situation would change.
     
  10. Tianshan

    Tianshan Regular Member

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    no, a PMI below 50 does not mean a contraction.

    it means a contraction in growth compared to the same period last year.

    overall, it is still growing. just not as fast as before.
     
  11. Ray

    Ray The Chairman Defence Professionals Moderator

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    However, one cannot quite know the reality since the figures have earlier been found to be inaccurate.
     
  12. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    HSBC does it by previous month, it is not run by CCP, although it is biased towards China Inc. According to their figures, manufacturing has been in decline 7 months straight. With that and property sales dropping by 20-30%, you are definetly in recession.
     
  13. Tianshan

    Tianshan Regular Member

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    you have no idea what the word "recession" even means. :rofl:

    it means two consecutive quarters of negative GDP growth.
     
  14. marshal panda

    marshal panda Regular Member

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    Unless supported by figures of independent bodies, nothing to be believed.
     
  15. asianobserve

    asianobserve Elite Member Elite Member

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    Not negative GDP, it's GDP decline for two consecutive quarters.

    Here's a basic definition of recession...

    "A period of general economic decline; typically defined as a decline in GDP for two or more consecutive quarters. A recession is typically accompanied by a drop in the stock market, an increase in unemployment, and a decline in the housing market. A recession is generally considered less severe than a depression, and if a recession continues long enough it is often then classified as a depression. There is no one obvious cause of a recession, although overall blame generally falls on the federal leadership, often either the President himself, the head of the Federal Reserve, or the entire administration."

    Read more: What is recession? definition and meaning
     
  16. asianobserve

    asianobserve Elite Member Elite Member

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    (double post)
     
  17. Tianshan

    Tianshan Regular Member

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    same thing.

    what do you think it means when a country has something like -7% GDP growth? it means their GDP is declining.

    greece even lost 1/5 of it's GDP in recent years.
     
  18. asianobserve

    asianobserve Elite Member Elite Member

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  19. Tianshan

    Tianshan Regular Member

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    the growth rate has declined, not the GDP itself.

    funny how all the indians on this forum are saying "china is in a recession". :rofl:

    that kind of thing would be big news. if it was true then every major media source in the world would be reporting it.
     
  20. asianobserve

    asianobserve Elite Member Elite Member

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    double post (again)
     
  21. asianobserve

    asianobserve Elite Member Elite Member

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    I'm just saying that China's GDP growth rate declined in the last 2 quarters... :thumb:
     

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