Thanks snaps, that’s heartbreaking in so many ways. A sibling of mine toured the Three Gorges by boat in the early noughties before they were flooded. The way of life was literally from another century. Back then they were relocating people for the dam project which was sad and depressing to see, but at least it was for productive infrastructure. To see people forcibly relocated to make way for the economic mirage of a ghost city is tragic! God help us all when it crashes.
The forex live says the 21% drop is the biggest in 3 years and may partially be explained by the Lunar New Year. I can’t read the FT article as it’s behind a paywall.
China fires biggest warning shot yet in trade war and now it’s up to Trump to decide how far to go
China has added its currency to the weapons it is willing to use in the trade war with the U.S., and it is now up to President Donald Trump to determine how much further the situation can escalate.
China on Monday allowed its currency to slide below what has been a psychological red line—the key 7 yuan to the dollar level — for the first time since 2008. China also halted new purchases of U.S. agricultural products, according to state run media.
The Chinese picked two sore spots for Trump, who has protested the strong dollar and railed against other countries he says are weakening their own currencies for trade advantage. He has also attempted to boost Chinese purchases of agriculture products to limit the impact on farmers, who have also received some federal funding to offset the string from the lost sales.
US stocks close down 3% on the day
Interesting perspective on recent societal changes in China. Possibly more important than the economic ones.
China’s debt hits 317% of GDP. The property bubble has resumed as buyers snap up post-Covid “bargains”. Housing loans rose by US $140 billion in June alone, the biggest jump ever.
Shares in the world’s biggest property company, China Evergrande Group, plummeted amid doubts over its $120 bn debt. Since this article yesterday, things have actually improved further as more creditors agreed to roll over debt. Still seems like a rocky road though.
11 years on from the start of the thread and a year since Evergrande’s debts were first mentioned here… could the bust finally be manifesting? As always when bubbles burst, I’m sure we’ll discover the headline figures are just a fraction of the black holes of fraud and misreporting going on in the background. Next up are the banks; god knows what’s been going on in there…
Lehmans Bros or no? What say the hangers on…
Gold up. Cryptos up.
Ultra super duper squeaky bum GO time?
Talk about timing for the release event of the iPhone 13
I wonder what tomorrow brings?
An article from 9 years ago called out Evergrande as a Ponzi scheme and has some interesting insights into Chinese business practices:
Also a quick sniff around a Chinese bank said to be heavily exposed shows some Irish pension fund involvement:
It is only 100,000 shares (bought in 2020 ) but it’s the only one I’ve checked.