Trinh Nguyen of Natixis says that the confidence in China is very short-lived and that the government needs to show concerted fiscal support for the market rally to continue.
This property problem is overblown. True, it is constitute 30% of Chinese GDP. True, it’s bubble is popped. But that doesn’t mean the end of property business in China. It doesn’t mean that China suddenly lose 30% of its GDP. There will always be a demand for property, not just in China, but every where except in Gaza. Property market will be back in China. Will it be 30% of GDP? Probably not, but it will still be a significant number. After all, people do need home.
My relatives have been lamenting that the economy has been bad since 2022. The anti western ultranationalism has done more harm than good. The wealthy chinese like them have been leaking safe havens outside of China but finding it increasingly difficult due to government barriers. It’s sad for me, being from an intellectual family, to see China under Xi revert to Maoist measures, reversing the correct reforms of Deng.
Xi can’t get cold feet now. And IMO, even 3 trillion Yuan isn’t enough. 2008 they had 4 trillion, now 16 years later only 3T?
You are reading too much Bloomberg, 3t is quite appropriate for now if there is 3t.
@@bigupnewyork arguably today’s Chinese economy is worse than 2008. The structural problems are a lot harder to correct yet gov plans to spend less?
This property problem is overblown. True, it is constitute 30% of Chinese GDP. True, it’s bubble is popped. But that doesn’t mean the end of property business in China. It doesn’t mean that China suddenly lose 30% of its GDP. There will always be a demand for property, not just in China, but every where except in Gaza. Property market will be back in China. Will it be 30% of GDP? Probably not, but it will still be a significant number. After all, people do need home.
yes, and they popped the property bubble around 3-years ago. Most of the hot air has already been released from that problem (quote, Lyn Alden)
The property sector only accounts for 6% of China’s GDP.
@@jklee5419if that the case why China government is implementing stimulus after stimulus to prop up the economy?
My relatives have been lamenting that the economy has been bad since 2022. The anti western ultranationalism has done more harm than good. The wealthy chinese like them have been leaking safe havens outside of China but finding it increasingly difficult due to government barriers. It’s sad for me, being from an intellectual family, to see China under Xi revert to Maoist measures, reversing the correct reforms of Deng.
US printing money to stimulate economy good with 2% growth is good.
When China does it with %5 growth is bad.
Prove that China have 5% growth in GDP.
china is saving ammo in case of trade war with trump