China Economy: News & Discussion

Haldilal

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Ya'll Nibbiars The idea to stop the wealthy Capitalist running the communist party was lost along with Mao Zedong. But after the Xi Zinping. The idea has resurfaced. And the proletrians are taking this a step ahead. But the proletrians are really the same is they also become the same Capitalist they were fighting?.
 
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Haldilal

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Ya'll Nibbiars is there any distuginsh between the Proletrians and the Capitalist?. Or else this have become a struggle between the have and have not's like the rest of the world?.
 
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rockdog

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Ya'll Nibbiars The idea to stop the wealthy Capitalist running the communist party was lost along with Mao Zedong. But after the Xi Zinping. The idea has resurfaced. And the proletrians are taking this a step ahead. But the proletrians are really the same is they also become the same Capitalist they were fighting?.
As i mentioned before, thanks for your attention to Chinese economy, but your knowledge and insight are still not that good and quite limited, if you always try to understand it based on ideology.

Please look at Ray Dalio's article, i think he gained a lot for investing China for past decades, same as me.

Understanding China’s Recent Moves in Its Capital Markets



Recent Chinese policy moves related to 1) DiDi’s listing and controls on its data usage and 2) China’s education companies being converted into non-profits have created a lot of doubt about capitalism and capital markets in China, so I’d like to help clarify what’s going on there.

I understand that it’s confusing to people who are not close to what’s happening. Since I started going to China 36 years ago, I have found that most Western observers who do not have direct contact with policy makers’ and don’t follow in detail the patterns of the changes have tended to not believe that the Chinese Communist Party’s usage of capital markets to foster development is real. They interpret moves like these two recent ones as the Communist Party leaders showing their true anti-capitalist stripes even though the trend over the last 40 years has clearly been so strongly toward developing a market economy with capital markets, with entrepreneurs and capitalists becoming rich. As a result, they’ve missed out on what’s going on in China and probably will continue to miss out. In this case the policy makers signaled to DiDi that it might not be best to go ahead with the listing and they understandably want to deal with the data privacy issue. In the case of the educational tutoring companies they want to reduce the educational inequality and the financial burden on those who are desperate to have their children have these services but can’t afford them by making them broadly available. They believe that these things are better for the country even if the shareholders don’t like it.

I remember a number of such analogous misinterpretations. For example, I remember how the Chinese retail investor bubble bursting led to government stock buying and then the government trying to manipulate the market for a while. Also I remember the Chinese currency plunge in 2015-16 resulting from the PBoC widening the band and how that led to many investors pointing to these developments as evidence that policy makers were turning away from developing capital markets. Some skeptical investors looked at these moves as inappropriate anti-free market interventions even though these same moves happened many times in many capitalist markets and even though the fiscal and monetary policy interventions in the U.S. and other developed markets dwarf the Chinese government interventions in its markets. Through it all Chinese policy makers successfully managed the fallout and pursued their goals; i.e., the direction of their actions never changed. It has been in support of a fast and steady development of capital markets, entrepreneurship, and openness to investment to foreign investors. So I encourage you to look at the trends and not misunderstand and over-focus on the wiggles.

To understand what’s going on you need to understand that China is a state capitalist system which means that the state runs capitalism to serve the interests of most people and that policy makers won’t let the sensitivities of those in the capital markets and rich capitalists stand in the way of doing what they believe is best for the most people of the country. Rather, those in the capital markets and capitalists have to understand their subordinate places in the system or they will suffer the consequences of their mistakes. For example, they need to not mistake their having riches for having power for determining how things will go.

You also need to understand that in this rapidly developing capital markets environment Chinese regulators are figuring out appropriate regulations so, when they are changing fast and aren’t clear, that causes these sorts of confusions, which can be misconstrued to be anti-capitalist moves.

Also, you need to understand that the global geopolitical environment changing leads to some changes. You can see that reflected in the U.S. governments’ policy shifts such as a) changing its policies about Chinese companies’ listings in the United States and b) threats to prohibit American pension funds from investing in China.

Assume such things will happen in the future and invest accordingly. But don’t misinterpret these wiggles as changes in trends, and don’t expect this Chinese state-run capitalism to be exactly like Western capitalism.

Having said that, I do think that it is unfortunate that Chinese policy makers don’t publicly communicate the reasoning behind their moves more clearly.

As for investing, as I see it the American and Chinese systems and markets both have opportunities and risks and are likely to compete with each other and diversify each other. Hence they both should be considered as important parts of one’s portfolio. I urge you to not misinterpret these sorts of moves as reversals of the trends that have existed for the last several decades and let that scare you away.

 

Jimih

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rockdog

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In total, 135 Chinese companies (including mainland and Hong Kong firms) made the cut for this year’s Fortune Global 500—an increase of 11 from last year and surpassing the 122 U.S. companies on the list. Here’s a closer look at the seven that were most profitable.


In the pandemic-hit year that was 2020, China was the only major global economy to record growth. In the first quarter of last year, China’s GDP contracted 6.8% as the early stages of the COVID-19 pandemic suppressed economic activity.



Yet China’s economy finished the year on a high note, recording a 2.3% uptick in GDP for all of 2020. The performance of the seven most profitable Chinese companies (as measured by gross profit) on this year’s Fortune Global 500 list followed a similar trajectory: a turbulent start to the year owing to an initial pandemic hit, with activity and profit picking up by the third quarter. The seven companies raked in a collective profit of $182.2 billion over the year.


The top four most profitable Chinese companies on this year’s Fortune Global 500, which ranks the world’s largest companies by 2020 revenue, are China’s “Big Four” state-owned banks—the Industrial & Commercial Bank of China, China Construction Bank, Agricultural Bank of China, and the Bank of China. The lenders all recorded modest profit rises around 1% to 3%, bucking the 20% drop in total profits that all Fortune Global 500 banks recorded.


China’s Big Tech and financial giants Tencent, Alibaba, and Ping An make up the final three most-profitable firms. Best known for messaging apps WeChat and QQ, Tencent saw its successful line of mobile games boost its bottom line last year. Meanwhile, rival Alibaba’s e-commerce business reached 1 billion annual active users worldwide, a new milestone for the company. Ping An, the country’s largest insurer, steadily increased its core life and health business, which recorded 5% profit growth; its new health and technology segments notched major revenue jumps.



Still, recent weeks have shown that a bumpy ride could lie ahead for China’s Internet giants. Alibaba’s recently released Q1 earnings missed estimates for the first time in two years; its $31.8 billion quarterly revenue failed to meet expectations of $32.4 billion. Meanwhile, Tencent’s stock plunged nearly 8.5% (at its lowest point) on Tuesday, after a state-affiliated editorial said video games were “spiritual opium” and referenced Tencent’s flagship game, Honor of Kings.


In total, 135 Chinese companies (including mainland and Hong Kong firms) made the cut for this year’s Fortune Global 500—an increase of 11 from last year and surpassing the 122 U.S. companies on the list. Here’s a closer look at the seven that were most profitable:

Industrial & Commercial Bank of China (No. 20)

The world’s largest lender by assets, ICBC recorded a 2020 profit of $45.7 billion—a modest growth rate of 1.3% but one that defied analyst expectations of a profit decline. ICBC’s total assets also grew significantly to $5.1 trillion, up from $4.6 trillion in 2019. Notably, the income from the lender’s personal wealth management and private banking services jumped by 8.4% to nearly $4.6 billion. Its investment banking business took the biggest hit last year, notching a 10.1% decline in income contribution to $3.3 billion.

China Construction Bank (No. 25)

CCB—the second-largest among China’s Big Four banks—recorded a 1.7% bump in profit last year to $39.2 billion. The COVID-19 pandemic hit CCB hard in the first and second quarters of 2020; in Q2, its profit growth rate dropped to –11%. But by the third quarter, this metric had rebounded. According to CCB, it was the only bank to keep its outlets open every day in Wuhan during the city’s early COVID lockdown. The lender grew its assets, loans, and customer deposits sizably last year: by 10.6% to $4.3 billion, 10.9% to $3.9 billion, and 12.2% to $3.1 billion, respectively. CCB has also taken a bullish stance on fintech. It poured more money into the space in 2020: $3.4 billion, up 25% from the year prior. It now has over 13,000 employees working in the fintech segment, up 22% from 2019.

Agricultural Bank of China (No. 29)

ABC, the Agricultural Bank of China, made the biggest jump among China’s major four banks this year, moving up four spots in the Fortune Global 500. ABC’s profits increased 1.9% to nearly $31.3 billion, buoyed by record-high loans totaling $278 billion. Established in 1951 as a financial services institution for China’s rural development, ABC increased its loans to 52 targeted rural counties by 36% in 2020 and loans to key agricultural enterprises by nearly 39%. ABC ramped up its “inclusive finance” loans to China’s small and medium enterprises by 62.3% to $57.1 billion. The lender’s total assets grew 9.4% to reach $4.2 trillion last year.

Bank of China (No. 39)

China’s oldest bank, founded in 1912, the Bank of China took in $27.9 billion in profit for 2020—a 3% increase from 2019—beating its peers in terms of annual profit growth rate and topping analyst expectations. Alongside its domestic peers, the BOC also grew its assets and liabilities last year, by 7% each to $3.7 trillion and $3.4 trillion, respectively. Like peer ABC, China’s oldest lender focused on its “inclusive finance” loans to small and medium enterprises in 2020; its loans in this segment boomed 48% to $94.6 billion.

Tencent Holdings (No. 132)

The oldest of China’s top three BAT (Baidu, Alibaba, Tencent) Internet giants, Tencent recorded a 71.5% profit jump in 2020 to $23.1 billion, bolstered by growth from all of its business lines—social media and video, online games, advertising, and fintech. While Tencent is best known for its social media and messaging platforms such as WeChat and QQ, it was the group’s video games business that surged the most last year. Tencent’s video games segment recorded a 36% annual revenue increase to $24.1 billion, driven by the success of its mobile phone games like PUBG Mobile and Honor of Kings. Revenue from its fintech and business services unit—from e-payments to cloud capabilities—also climbed 26% to $19.8 billion.

Alibaba Group Holding (No. 63)

Despite heightened regulatory scrutiny and a $2.8 billion antitrust fine, Jack Ma’s Alibaba Group raked in $22.2 billion in profits—a 3.6% boost—for its fiscal year ended March 31, 2021, thanks to its bread-and-butter Internet retail platforms, Taobao and Tmall in China, Lazada in Southeast Asia, and AliExpress in other overseas markets. The group hit a milestone of over 1 billion annual active users across all platforms, with 891 million in China and 240 million overseas. The gross merchandise value of all goods transacted on Alibaba platforms generated a record $1.2 trillion for the year. Over 70% of its new annual active costumers are from China’s rural areas. Taobao’s mobile app is a social e-commerce platform that offers livestreaming via Taobao Live—allowing merchants to connect with customers through video—and is one of Alibaba’s fastest-growing segments. The total gross merchandise volume on Taobao Live, which was launched in 2016, reached $76.3 billion in 2020.

Ping An Insurance (No. 16)

Founded in 1988, Shenzhen-headquartered Ping An Insurance turned a profit of $20.7 billion for the year ended Dec. 31, 2020, helped by customer growth and its new health and fintech businesses. Yet its 2020 profit was 4.1% lower than the year prior. Over 2020, Ping An acquired 37 million new customers—retail customers ticked up 9% to 218 million, while its Internet users increased 16% to 598 million. The group’s core life and health insurance business stayed steady during the pandemic year as it shifted operations online; the unit’s profit grew 5.3% to $14.5 billion. Ping An’s new health- and tech-focused segments got a boost in 2020: Good Doctor, a platform offering online medical services, recorded a revenue jump of 82.4%, and OneConnect, the group’s fintech platform that debuted in New York in December 2019, marked a 42.3% revenue increase to $510 million.
 

ezsasa

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anyone knows what this guy Yanis Varoufakis's spiel is?

greek professor shuts down a white lady on china doing business with africa

 

rockdog

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anyone knows what this guy Yanis Varoufakis's spiel is?

greek professor shuts down a white lady on china doing business with africa

He as minister of finance of Greece government, dealt with China in many projects, I think he understand better about Chinese government than lots of statesmen from EU. Such as:

China bought most of Greece’s main port and now it wants to make it the biggest in Europe
 
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Wisemarko

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SoftBank to Hold Off on New Investments in China Amid Tech Crackdown
World’s biggest tech investor posts lower profit as some investments sink in value during April-June quarter

By WSJ
Updated Aug. 10, 2021 1:14 pm ET

‘I want to wait a bit longer to see what kinds of regulations there are, how far they extend, and what impact they have on the markets,’ said SoftBank Chief Executive Masayoshi Son.
Photo: Kiyoshi Ota/Bloomberg News
TOKYO— SoftBank Group Corp. said it is holding back on new investments in China while it sees how the country’s tech crackdown plays out, in the latest sign of how Beijing’s move to tame its technology sector is rippling through the investment world.

The giant Japanese investor and operator of the $100 billion Vision Fund is one of the world’s best-known funders of Chinese startups. But recently, the value of many of those investments has been tumbling fast, after Chinese regulators started investigating some SoftBank investee companies for breaches including anticompetitive practices, consumer protection and data-security problems.
 

rockdog

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China's new EV big 3 gained 8,000 sales each, this July.
Xpend's average price is $USD35,000-40,000; Li Auto is $USD45,000; Nio is $USD50,000-60,000.

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Jimih

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China is good only at stabbing friends on the back.

Pathetic bunch of people

The Chinese regime is shifting the blame of the COVID19 surge in China’s Nanjing city to Russia.

 

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