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China Misses 3 Trillion Yuan Of Due To Accounting Error

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http://www.zerohedge.com/news/china-misses-3-trillion-yuan-you-should-trust-inflation-and-gdp-data

In yet another accounting error (or not), a sovereign nation accidentally missed a large amount of debt that it owes. Bloomberg (via The Economic Observer) is citing data from Beijing Fost Economic Consulting that ~3tn yuan ($473bn) of debt in township governments was not included in China's National Audit Office reports. This is not a drop in the ocean as it raises the local government debt load by around 30% and represents debt in vehicle financings and bank loans. Of course, we should remain calm and walk (not run) to the exits as GDP, inflation, and whichever macro data point you choose that has subliminally met expectations recently is completely accurate - have no fear.

From Bloomberg:

China’s National Audit Office didn’t include ~3t yuan ($473b) of debt in township governments in report, Economic Observer says, citing data from Beijing Fost Economic Consulting Co.

China’s local govts. of 4 levels may have 13.5t yuan in debt vs 10.7t yuan reported by audit office: Observer

Debt in local govt. financing vehicles, bank loans underestimated in audit report: Observer

Great news especially as it will have helped to increase that all important GDP figure. Looks like the Chinese have decided to follow the best Western practices.

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It was probably just underneath the German's 47.5bn euros they found down the well.

Hopefully they don't keep going further down as they might discover our £1Tn!

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It was probably just underneath the German's 47.5bn euros they found down the well.

Except the Germans found 47.5Bn Euros to add to their balance sheet.

As I understand it, the Chinese need to subtract 3 Trillion Yuan from theirs...

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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