Search results

  1. Armand2REP

    The Chinese High-Speed Train Network No One Else Really Wants

    I watched a documentary not too long ago called The Chinese Hustle that laid out the IPOs of Chinese companies on the NYSE were all scams faking their numbers by up to 10X. If we were to audit Chinese banks and corporations would we find similar fraud?
  2. Armand2REP

    The Chinese High-Speed Train Network No One Else Really Wants

    There is one big problem with OBOR that isn't an Indian problem, it is a Chinese debt problem. China loaned Sri Lanka $10 billion for a port that now sits idle and defaulted with Chinese banks on the hook. Several times more was given to Pakistan that looks set to default and many more...
  3. Armand2REP

    The Chinese High-Speed Train Network No One Else Really Wants

    DJI is not even in the top 1000 companies much less a name brand, looking at reviews their after sales service is practically non-existent. Citing Apple makes no sense, China is a screwdriver assembly line for suppliers (Foxconn) of Western brands that has foreign managers overseeing...
  4. Armand2REP

    The Chinese High-Speed Train Network No One Else Really Wants

    There is a reason Chinese products have the reputation of being cheap junk and disposable. They cut corners to make them and then don't provide the aftermarket service to fix the problems, they are quick to make excuses not to honour warranties and making absurd RMA back to China instead of...
  5. Armand2REP

    The Chinese High-Speed Train Network No One Else Really Wants

    The Beijing-Shanghai HSR cost $32 billion to build and has $1.1 billion gross revenue, once overhead/taxes are deducted and debt servicing set at 10% APR it will only take 100 years to pay off. This is the most successful of all Chinese HSR projects so the future for the whole is not very...
  6. Armand2REP

    The Chinese High-Speed Train Network No One Else Really Wants

    An HSR between two wealthy tier 1 cities might make a profit, but one example out of hundred failures doesn't translate to success much less account for the debt servicing required to be paid. Based on the payment to debt ratio the servicing cost is over 10% APR and with debt soon to hit $1...
  7. Armand2REP

    The Chinese High-Speed Train Network No One Else Really Wants

    With debt service costs at 54% of revenue China Railway is a zombie corporation. The state might be willing to prop it up as a strategic asset but no other nation on Earth would do it at the high cost of $85 billion a year and climbing. The French railway has a similar problem of $12 billion...
  8. Armand2REP

    The Chinese High-Speed Train Network No One Else Really Wants

    Not even China has made HSR profitable. China Railway's debt load is now 5.04 trillion yuan and costs 540.5 billion to service it. With only 1 trillion yuan in revenue the debt pile just keeps on climbing...
Top