Today is Double 10 day, celebrated in the ROC as their independence day from the last emperor. Not as big a thing in the PROC.
China and Canada get into it. Canada appears to be 100% in the right and China 100% wrong from what I can tell.
The comments come after CNN revealed last week that a Chinese warplane fired flares in front of a Canadian military helicopter on October 29, an operation that Canadian military officers said was reckless and could have resulted in the downing of the aircraft.
Straight out of a recent Tom Clancy Jack Ryan novel.
China has many internal problems right now that they are desperately trying to hide to the outside world. Huge increase in the number of people defaulting on credit.
This article is worth a read because it covers what they do in the event of a personal default (loans, mortgages etc). Its absolutely bonkers.
Chinese borrowers default in record numbers as economic crisis deepens - Chinese borrowers default in record numbers as economic crisis deepens via @FT
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And now we have deflationā¦yep, the chinese economy is going to be in the doldrums for years.
Chinaās deflation worsens as economic pressures mount - Chinaās deflation worsens as economic pressures mount via @FT
And its now goneā¦
There seems to have been a recent shakeup in the military ranks. An emphasis on loyalty is certainly bad for business, but it helps President Xi do whatever he pleases.
I feel like ādefaultā is the wrong word, although I suppose itās most accurate since itās different parties.
But I borrow $500k to buy an apartment yet to be built. The builder goes off and spends my money and never delivers the apartment so I stop paying the mortgage on my theoretical home and now Iām the bad guy.
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Yes. Agreed.
The property ponzi scheme they had going was downright astonishing. But it does look like Xi is going to be prioritising homes for the people who paid for one but did not receive it.
International investors will lose their shirts on this one.
Yeah what is happening to the whole unspoken agreement in China where the economy is allowed to be free market and in exchange the citizens give up political rights.
Theyāve made an absolute mess of the economy with the property market and COVID and have all but snuffed out what made Hong Kong dynamic.
Yep. This basically confirms my suspicions.
You canāt trust any numbers coming out of Chinese companies. Its like the wild west of financial reporting.
If anything, they are probably minimising the size of the inflated revenues.
Chinese authorities accuse Evergrande of inflating revenues by $80bn - Chinese authorities accuse Evergrande of inflating revenues by $80bn via @FT
So they are 25 yearās behind the US on rolling some major accounting fraud?
Sure.
But in China it is likely much more widespread and they keep it hidden as much as they can.
The US has corruption, but its also more transparent when āit gets found outā.
$80bn = 0.25% of China GDP
This basically reinforces the view that their āgrowthā numbers are materially inflated as well.
Combine this problem with their deteriorating demographics, and China is looking to be in serious economic trouble.
You are making valid points, and I feel that you can also be posting on the Insomnia thread. Isnāt it 2am London time when you made your last post?
1 AM here.
Almost finished looking at some heavy model runs.
Some days I work very late simply based on when the runs I asked for have completed.