China Economic News

[BlueKelah]

@behappyalways yeah it seems china has manage to stem part of the capital outflow but the trend is still for private company to shift funds out of china. There is still downtrend in the new private business investment numbers which correlate well to what we are seeing with this suspicious rise of imports from select places like hk.

Yuan has also been creeping down past year and I reckon it will be a trend we will keep seeing.



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[Behappyalways]

Why China Can't Solve Its Debt Problem
http://www.bloomberg.com/view/articles/2...bt-problem

[Behappyalways]

Chinese province to extend maturity on $60 billion in coal loans
http://www.cnbc.com/2016/08/08/chinas-sh...loans.html

[Behappyalways]

Last year, a city government in the eastern province of Jiangsu ordered a bank to sell 10 billion yuan worth of sour loans owed by state-owned enterprise to a local government-backed AMC for only 220 million yuan, sources said. The AMC later resold the assets to the original debtor for 250 million yuan. This means the debtor paid 30 million yuan to wipe-off a loan worth billions by recycling it through a bad-loan disposal company.

Carving up the Non-performing Loan Elephant
http://english.caixin.com/2016-08-08/100975319.html

[Behappyalways]

China Edges Closer to a Liquidity Trap
http://english.caixin.com/2016-08-16/100978437.html

[Behappyalways]

It cited a client report by China International Capital Corp (CICC) warning that the underlying picture is deteriorating, despite a surge in public spending and a property boom that is for now masking the problem.


Mr Kuijs said it took 44 yuan to generate 100 yuan of gross fixed capital formation from 2002 to 2008. This rose to 62 last year. It is now running at 70.

Net new loans to businesses contracted in June for the first time in eleven years.


The Chinese authorities have to walk a tightrope since capital outflows crept up to $42bn in July, the highest since the panic earlier this year. Capital Economics estimates that the central bank had to sell $29bn of foreign bonds to support yuan last month



China caught in 'dead money' trap as central bank pleads for fiscal stimulus
http://www.telegraph.co.uk/business/2016...or-fiscal/

China Edges Closer to a Liquidity Trap
http://english.caixin.com/2016-08-16/100978437.html

[CityFarmer]

The debt-to-equity, will move some burden of debt, to equity...

China to publish debt-to-equity plan soon: media
29 Aug 2016 08:50
[SHANGHAI] China could allow industrial firms to convert their debts into equity stakes as early as next month, with the government now putting the finishing touches to a new plan, the official China Securities Journal reported on Monday.

The newspaper said China's cabinet, the State Council, was currently finalising plans to allow "firms in the real economy with development potential" to convert their debt into equity.
...
REUTERS

Source: Business Times Breaking News

[Behappyalways]

Fitch reveals the $2trillion black hole in China's economy that heralds a lost decade
http://www.telegraph.co.uk/business/2016...laims-sta/

[BlueKelah]

Now all the big money still trying to run out of China and China big city property now booming again thanks to gov pump in another 150billion in addition to the billions infrastructure fund pump in earlier this year, we wont be seeing the end so soon yet.

But when it comes, China will be Japan 2.0  LOL.

Yuan still going down quietly... 

[Behappyalways]

China's Most Misleading Indicator
https://www.bloomberg.com/view/articles/...-indicator