Well, I would first have to care about what Beijing says to care about its explanation of events... and of course I don't drink CCP Kool Aid. The Shanghai Index is down 66% from its pre-crisis high. Dow Jones and Euronext recovered their value and even exceeded it so it is only China that never recovered. As shown on the gloom thread, backed up inventory is in direct correlation with Chinese stock performance.
Factories are under pressure to keep up production or the banks will call in their loans. Shipyards are finishing orders from two years ago with China's biggest shipyard without a single new order for the year. Appliance makers are offering discounts below production cost inventory has piled so high. The solar industry is bankrupt with half the production lines being shut down as banks call in loans. Heavy equipment sales have collapsed. Chinese brand automobiles and apparel are quickly losing market share. Corporate profits are negative 11.7% YoY excluding financials. There are ghost cities, empty airports, unused industry clusters and deserted highways from one end to the other. Hong Kong exporters are shutting down 2500 factories in Gaungzhou. Wenzhou is in economic collapse and the systemic problems plaguing that city are spreading across the provinces. Not to mention a ghost fleet of coal carriers with no place to unload cargo, flat electricity production, mines closing by the hundreds, steel factories by the thousands.
Local governments have unveiled another 4 trillion economic stimulus that no one but PBOC can finance. CCP says private investment has to cover it since they don't have the money but no private firm is going to dump money into construction for fake GDP sake. They can't even get local governments to build low income housing like they were ordered to do. Producers are waiting on a second stimulus so they keep rolling out inventory, but is it going to come? If it does it will leave China with so much bad debt it will be bankrupt... if it isn't already.
