Flaunt your wealth, or “falling stars,” has become an online craze in China. Posing in bizarre situations as if tripping from their luxury cars, rich kids are jostling to be photographed surrounded by their money, designer brands and jewelry.
As an analogy of the broader economy, it has merit.
Official data points to a distinct “stumble,” real or imagined, in a number of key areas. In September, profit growth at China’s industrial companies dipped for the fifth consecutive month.
The slowdown was in line with numbers released last week which showed factory output increased at its “weakest pace” in two years.
“If the Chinese economy continues to weaken, the corporate sector could face heavier pressure in terms of profit-making performance,” Huang Wentao, an analyst at the investment bank and brokerage, China Securities, said.
Last month, corporate profits did edge 4.1% higher to 545.5 billion yuan ($78.57 billion) from the same period a year earlier.
But that was less than half of August’s growth, figures released by the National Statistics Bureau showed at the weekend.
Already there are concerns that deteriorating corporate profits will eventually put pressure on jobs while slamming the brakes on consumer spending.
“Earnings in September were mainly pressured by a greater slowdown in production, and sales and declining price growth,” He Ping, a senior official at the NSB, said in a statement.
Similar to “flaunt your wealth,” there have been trips, slips and blips along an increasingly dangerous economic road, dotted with a myriad of hazards, such as rising trade tensions between China and the United States.
Fallout from President Xi Jinping’s credit crunch has also dragged down growth along with a tumbling renminbi.
Again, these are the ramifications of disappointing data. Last week, the numbers showed the economy in the third quarter expanded at the weakest rate since the Great Recession in 2009.
Moreover, mainland markets have been sucked into this vortex with each statistical stumble.
Nearly US$3 trillion has been wiped off the Shanghai Composite Index in the past nine months and $1.1 trillion in Shenzhen.
Bearing the brunt of the turmoil has been an army of 150 million individual investors, despite the People’s Bank of China pumping billions of dollars of liquidity into the markets.
On Monday, Shanghai and Shenzhen dropped by more than 2% as economic jitters persisted.
“Amid trade headwinds and domestic uncertainties, China’s economic growth [could] slow to 6.4% year-on-year in the fourth quarter,” economists at Citibank projected in a report.
“As lagging indicators, overall industrial revenue and profit should continue to soften accordingly,” they added.
Ironically, like the “flaunt your wealth” challenge, the broader economy could be in for a few more spills and chills before the end of the year.
Can’t you see the Chinese have been very steady, doing what is good for the country regardless of the trade war. The US is trying all ways to unnerve them,to little effect. Instead it is now the US lost for direction having squander and spend like there’s no tomorrow. There will be nobody to rescues you this time.
Can’t you see the Chinese have been very steady, doing what is good for the country regardless of the trade war. The US is trying all ways to unnerve them,to little effect. Instead it is now the US lost for direction having squander and spend like there’s no tomorrow. There will be nobody to rescues you this time.
LOL, this was hilarious! Chinese corporations are "only" growing at 4.1% and China’s economy is "only" growing by 6.5%. Run for the hills! Hide your children! The sky is falling!
LOL, this was hilarious! Chinese corporations are "only" growing at 4.1% and China’s economy is "only" growing by 6.5%. Run for the hills! Hide your children! The sky is falling!
What kind of a career is it to spend all day, every day looking for (the same old) negative things to write about China? Do Mr. Watts hate China that much? No doubt there are points of fact in what he writes, but how do they fit into the big picture of China having helped hundreds of millions of people rise out of poverty toward a reasonably comfortable life? The mainstream media are bad enough, but to have AT sink to the level of propaganda rag is so disheartening.
What kind of a career is it to spend all day, every day looking for (the same old) negative things to write about China? Do Mr. Watts hate China that much? No doubt there are points of fact in what he writes, but how do they fit into the big picture of China having helped hundreds of millions of people rise out of poverty toward a reasonably comfortable life? The mainstream media are bad enough, but to have AT sink to the level of propaganda rag is so disheartening.
Lazza, there are plenty of criticisms against the CCP in China. The latest being by the paraplegic son of Deng Xiao Peng. Just do more research and do not be blinded by your prejudices against the CCP.
Do you read Chines ?? I bet you don’t.
Lazza, there are plenty of criticisms against the CCP in China. The latest being by the paraplegic son of Deng Xiao Peng. Just do more research and do not be blinded by your prejudices against the CCP.
Do you read Chines ?? I bet you don’t.
In China, no criticism of anything the CCP are responsible for is allowed. This includes financial and economic news. All editors must ensure that there is no negative news regarding the economy; consequently, most Chinese citizens find it very difficult to cope with any negative news. This is compounded by the CCP warning citizens that the West is anti-Chinese and prints lies about the country. The ‘feelings of the Chinese people’ are very sensitive and cannot be allowed to be offended. Therefore, it’s hardly surprising that Chinese posters all over the Net are highly sensitive and respond so vehmently to any criticism, no matter how accurate or true. Of course, the Western press is not blameless and completely unbiased in every report, but generally speaking, press coverage outside of China is immensely more reliable and accurate than the CCP propaganda within.
In China, no criticism of anything the CCP are responsible for is allowed. This includes financial and economic news. All editors must ensure that there is no negative news regarding the economy; consequently, most Chinese citizens find it very difficult to cope with any negative news. This is compounded by the CCP warning citizens that the West is anti-Chinese and prints lies about the country. The ‘feelings of the Chinese people’ are very sensitive and cannot be allowed to be offended. Therefore, it’s hardly surprising that Chinese posters all over the Net are highly sensitive and respond so vehmently to any criticism, no matter how accurate or true. Of course, the Western press is not blameless and completely unbiased in every report, but generally speaking, press coverage outside of China is immensely more reliable and accurate than the CCP propaganda within.
And in English. I reckon it must be 3am in your pretend land of NSW…..
Face it the welcome growth in China has resulted in the effulent as well as the affluent.
Do the Wumao give you English dictionaries ?
And in English. I reckon it must be 3am in your pretend land of NSW…..
Face it the welcome growth in China has resulted in the effulent as well as the affluent.
Do the Wumao give you English dictionaries ?
So is he lying ?
So is he lying ?
Interesting to compare near term GDP growth rates between China and the US.
"This year, the U.S. economy grew at 2 percent in the first quarter and jumped 4.2 percent in the second. That means the economy is roughly growing at an annual rate of 3 percent, Roubini estimated. But without the fiscal stimulus, he warned that growth would likely fall below 1.8 percent by 2020." From recent interview with Noriel Roubini.
" Kaplan: Our forecast for the year, we were in the range of 2.75 to 3%, and I would say, my best judgment is we’ll be at the high end of that range. and – so we’ll have a very strong year in ’18. We had thought all along we’d have have a good year. One of the reasons I’d point out is a sizable fiscal stimulus. And the only caution I’d give is in ’19 some of that stumulus will fade. It will fade further in 2020. And so we expect economic growth is going to tail off somwhat, down to what we call potential, which is closer to 1.75 or 2%. From a CNBC interview with President of the Dallas Federal Reserve, Robert Kaplan.
see: https://www.cnbc.com/2018/08/23/first-on-cnbc-cnbc-transcript-dallas-fed-president-robert-kaplan-speaks-with-cnbcs-steve-liesman-today.html
Interesting to compare near term GDP growth rates between China and the US.
"This year, the U.S. economy grew at 2 percent in the first quarter and jumped 4.2 percent in the second. That means the economy is roughly growing at an annual rate of 3 percent, Roubini estimated. But without the fiscal stimulus, he warned that growth would likely fall below 1.8 percent by 2020." From recent interview with Noriel Roubini.
" Kaplan: Our forecast for the year, we were in the range of 2.75 to 3%, and I would say, my best judgment is we’ll be at the high end of that range. and – so we’ll have a very strong year in ’18. We had thought all along we’d have have a good year. One of the reasons I’d point out is a sizable fiscal stimulus. And the only caution I’d give is in ’19 some of that stumulus will fade. It will fade further in 2020. And so we expect economic growth is going to tail off somwhat, down to what we call potential, which is closer to 1.75 or 2%. From a CNBC interview with President of the Dallas Federal Reserve, Robert Kaplan.
see: https://www.cnbc.com/2018/08/23/first-on-cnbc-cnbc-transcript-dallas-fed-president-robert-kaplan-speaks-with-cnbcs-steve-liesman-today.html
Jean Philippe Mudaheranwa
"6.4 is very low for a country of 1.4 billion people."
I find this statement very interesting. Could you explain and possibly expand on this? If it’s true then wouldn’t by the mere fact that China has so many people it will become the world’s largest economy many times over in the near and longer term future, and there is not that much the US can do to stop it?
Jean Philippe Mudaheranwa
"6.4 is very low for a country of 1.4 billion people."
I find this statement very interesting. Could you explain and possibly expand on this? If it’s true then wouldn’t by the mere fact that China has so many people it will become the world’s largest economy many times over in the near and longer term future, and there is not that much the US can do to stop it?
6.4 is very low for a country of 1.4 billion people. it needs much more than that to create a stable pool of new jobs and increase the middle class, provide the political stability the ccp needs to stay in power.
Even if you disagree with that guy, why do you need to ise such a vulgar and trashy language?
6.4 is very low for a country of 1.4 billion people. it needs much more than that to create a stable pool of new jobs and increase the middle class, provide the political stability the ccp needs to stay in power.
Even if you disagree with that guy, why do you need to ise such a vulgar and trashy language?