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THE GREAT BIG CHINA THREAD


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http://www.zerohedge.com/news/2014-11-11/chinas-latest-ghost-town-50-billion-fake-replica-manhattan

"They are building stuff that nobody really wants or needs... and there will be a day of reckoning" sums up yet another mega ghost city project under development in China. As NBC News reports, China's $50-billion knock-off of the Big Apple - near the port city of Tianjin, some 120 miles from Beijing - complete with its own Rockefeller Center and Twin Towers has been billed as the world's largest financial center in the making. But this Manhattan still has a long way to go...

Ian Williams explains nothing has improved in China since we last highlighted the ghost city phenomenon...

As NBC News reports,

China's $50-billion knock-off of the Big Apple sits on a river bend — much like its namesake — near the port city of Tianjin, some 120 miles from Beijing. Complete with its own Rockefeller Center and Twin Towers, it's been billed as the world's largest financial center in the making. But this Manhattan still has a long way to go.

A recent visit shows that construction that began in 2008 on the back of a massive credit boom unleashed in China after the global financial crisis appears to have ground to a halt. While the stunted version of “Rockefeller Center” and its Twin Towers appeared to be complete — both were empty and fenced off.

"It’s the financial crisis. The impact is big," said one man on the site who preferred not to be identified but said he worked for a transportation company. "I think there are still working on a building over there," he added, pointing down a wide and empty highway, strewn with litter.

...

It was scheduled for completion in 2019, offering 164 million square feet of office space over an area larger than Manhattan's financial district in a bid to stimulate development of vast residential districts nearby.

"They are building stuff that nobody really wants or needs — and there will come a day of reckoning," explained Gillem Tulloch, a Hong Kong-based analyst and managing director of GMT Research who has studied the growth of China's "ghost cities" across the country.

Just incredible.

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China's Shadow Banking Grinds To A Halt As Bad Debt Surges Most In A Decade

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What is the main culprit for the contraction in China's all important credit formation? In two words: shadow banking. As Bank of America summarizes "shadow banking is being tamed" because "the changing structure of TSF suggests that Beijing’s efforts in controlling some types of shadow banking have made some achievements. Two major drivers for the steep decline of TSF from Sept to Oct were the falling of non-discounted bills (down RMB241bn) and falling trust loans (down RMB22bn). By contrast, new corporate bonds were at RMB242bn, a sharp rise from RMB151bn in Sept." In other words, China's shadow banking not only ground to a halt, it actually continued moving in reverse!

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China’s central bank said its surprise move to cut interest rates for the first time since 2012 is designed to help small firms and protect depositors instead of all-out monetary easing. How the nation’s lenders respond will ...

Reuters: China Ready To Cut Rates Again

Bad News Mounts for Chinese Banks. Funds Grow More Bullish

Property, manufacturing woes help trim China's shadow banking

SHANGHAI/BEIJING - A bid by China to rein in its "shadow banking" activity is producing results, thanks to slowing economic growth and tighter regulation.

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China’s central bank said its surprise move to cut interest rates for the first time since 2012 is designed to help small firms and protect depositors instead of all-out monetary easing. How the nation’s lenders respond will ...

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Explosive Excrement Topples Building In China, 15 Injured

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Despite the best efforts of central planners, shit still happens (even in China). In an 'Onion-esque' story, China.org reports a cesspool filled with excrement exploded in a central Chinese city, injuring 15 residents and toppling a building on Saturday, police said. But this is not the only excrement-enthused event in China...

Literally the 5h1t is getting ready to explode...

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The leaning towers of Shanghai: Tower blocks built two years ago for people forced to make way for new Disney theme park are now holding each other up
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The 15-storey blocks were built in Shanghai, eastern China two years ago to offer accommodation to people relocated to make way for a Disney theme park. But residents who live in the high-rise apartments, in the Pudong New Area in Chuansha Town, say the original narrow gap between the buildings has disappeared and they are now touching. Some are afraid to go back in to their own homes after resident Qin Lijun, 34, went onto the roof to have a cigarette and discovered the crumbling concrete.

Can't see the problem, pull them down and build some more for a Keynesian boost.

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China’s central bank refrained from selling repurchase agreements for the first time since July, loosening monetary policy further as a report showed industrial companies’ profits fell by the most in two years.

China Sees No Need to Change Prudent Monetary Policy, Hu Says

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irro - I value all your organised news snippet updates to topic-specific hpc threads. Really helps keep me informed.

Casino revenues in the world's largest gaming centre, Macau, fell almost 20% in November from a year ago as gamblers' appetite for the gambling hub continued to wane. Gambling revenue from the Chinese territory's 35 casinos was down to 24.3bn patacas ($3bn; £1.9bn). That marked the sixth consecutive decline on an annual basis and the fifth consecutive monthly drop. Macau is the only place in China where casinos are allowed to operate.

http://www.bbc.co.uk/news/business-30272168

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China to crack down on tax avoidance by foreign firms - Xinhua

SHANGHAI - China will toughen its stance on tax avoidance by foreign firms to prevent tax payments being directed overseas, the official Xinhua news agency has said, after Beijing levied $140 million (£89 million) in back taxes from U.S. firm Microsoft Corp last week.

China's fourth-richest man seeks expansion with $6 billion IPO of Dalian Wanda property unit

BEIJING/HONG KONG - Wang Jianlin plans to raise as much as $6 billion (3.81 billion pounds) from selling shares in Dalian Wanda Commercial Properties Co Ltd , to help fund the expansion of an empire built at speed using cheap government land.

Once more we have property.

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Fewer applicants...

China's Civil Service Loses Luster Amid Graft Crackdown
December 01, 2014


[..]What’s behind the waning interest? A clear cause appears to be President Xi Jinping’s protracted campaign against official graft and extravagance. Previously, many public servant jobs had been known for providing generous perks, including use of government cars, travel with stays in nice hotels, banquet meals, and often opportunities for “gray” or illicit income.

That is changing.

Xi has overseen the outing and punishment of thousands of cadres for corrupt or lavish behavior. And he has ordered a reining in of perks, including by limiting government meals to “four dishes, one soup,” as the official mantra puts it.

http://www.businessweek.com/articles/2014-12-01/chinas-civil-service-loses-luster-amidst-graft-crackdown

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Growth in China's services sector quickens in November but outlook still worrying

BEIJING - China's services sector grew slightly faster in November, two surveys showed on Wednesday, a welcome respite to a run of underwhelming data but still unlikely to allay concerns about the softening Chinese economy.

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Chinese Stocks Up 41% Since Unleashing QE As Margin-Trading Doubles

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A funny thing happened in China in July. Ever so quietly, and with little aplomb, the PBOC unleashed CNY 1 trillion of 'Pledged Supplementary Lending' (PSL) to China Development Bank - later dubbed "QE-Lite." Economic indicators temporarily blipped higher, a new recovery was proclaimed by the masses, and the world fell back into its stupor... despite the post-credit-impulse hangover which has seen Chinese data collapse in the last 2 months. But that did not stop speculators... tired of betting on Chinese real estate (which never goes down), the 'signal' of QE has sparked a stunning 41% surge in Chinese stocks since PSL. However, this exuberant resurgence (+4.3% last night alone) rests on shaky foundations as margin trading balances have more than doubled during this period...

Shares on margin... WTF could possible go wrong with that!!!!

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