China’s economic prospects are gloomier than at any point in recent history.
The dire state of the property market is the chief problem. Prices and sales have fallen for more than a year; policymakers have failed to prevent the correction. During the stock rout of 2015 retail investors had a slogan: “Sell your stocks and buy real estate.” No one is chanting it these days. To make matters worse, the government’s rescue plans do not look up to the task.
For many citizens, it feels as if China never truly emerged from its dismal zero-covid years.
An economic recovery that was expected to play out in 2023 instead faltered during the first half of the year, leaving the country mired in deflation.
Pessimism has clouded the market ever since.
More than 200m Chinese people own stocks, and officials risk taking the blame.
Although Chinese authorities still hope to attract investment, foreign investors are fleeing. They have been net sellers for months, dumping $2bn-worth of shares in January alone. The sell-off has been so severe that some experienced foreign investors are shutting down.
Here are the top political news stories for today.
@D3fenceOrangePatriot2yrs2Y
China was once on pace to surpass total US GDP. Now, it may never happen. Their population is aging. The remnants of the one child policy sped them to below replacement level births (also true now in US) - but no one wants to immigrate to China.
All this might make China more dangerous.
The inherent problem is the fact that China, is run by communists.
Love them or hate them, communism has never been a driver of great economies, and despite what China's supporters of hybrid capital/communism say , they are eternally bound to getting around on one leg that is lame. That will never change as long as the communist party in in charge.
The predominate mantra in the global business community today is: ABC. Anywhere but China.
Sooner or later, Communism always fails.
The Goldilocks era is over.
They can massage the numbers all they want but Capitalism will still be on the winners podium at the end of the day.
@PonieNoraForward2yrs2Y
The Real Estate disaster will take years to play out. The effect is devastating as Chinese have very few other ways to invest, and real estate always at the fore. Take a look at real estate in Japan, fifty years later. They are literally giving houses away for free. Invest in china at your own risk. Wall Street may not be able to withdraw its funds at will.
@ISIDEWITH2yrs2Y
@ISIDEWITH2yrs2Y
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