CHINA Trillion Yuan Debt Disaster: Stimulus Fails to Deliver Economic Growth & Investment Collapses
Video Summary
The Chinese economy has been struggling, with the stock market experiencing a significant decline over the past 2.5 years. The Shanghai Stock Exchange Composite Index has fallen by 27% since 2021, with the high point of 3,711 in September 2021. However, there has been a recent bounceback, with the index increasing by 177% over the last 3 months. This is attributed to the Chinese government investing in funds to buy shares, driving up prices. The government has also been increasing the availability of lending to Chinese businesses, but research shows that this debt is not being used by manufacturing businesses, but instead is being used to invest in financial products.
The government has announced a new initiative to raise 1 trillion yuan in long-term debt, with 30% of it being dated as 20-year bonds, 60% as 30-year bonds, and 10% as 50-year bonds. The data suggests that the Chinese economy is continuing to take on more debt to stimulate growth, but with diminishing returns. The government’s efforts to boost the economy through debt have had little impact, and there are concerns about the sustainability of this strategy.
Related posts:
CHINA’s $9 Trillion Debt Disaster
CHINA Businesses Imploding as 30% Make Losses as Overcapacity Drives Down Prices & Profits
CHINA -$78 Billion Evergrande Fraud Rocks China & Risk of Property & Finance Sectors Collapsing
CHINA Property Market Starts to Collapse as More Developers Follow Evergrande into Liquidation
CHINA – Trade War is Damaging Economy as USA & Europe Apply Increased Tariffs
CHINA Sued for Property Losses – Bondholders Launch Legal Action Over Guarantees By State Companies
CHINA Nationalizing Real Estate as Property Collapse Deepens, Prices Crash & LGV’s to Buy Apartments
CHINA Electric Vehicle Disaster as Sales Growth & Prices Fall, USA 100% Tariff & Competition Soars
Related:
