The Shanghai Market is down 26% in nine months and Hong Kong is down 23% in the same period.
Chinese GDP was below forecast two weeks ago, and the data today is certainly not helpful.
Do you have any insight on government and private debt and the health of the banking system?
Thanks.
I have no insight in the Chinese government or the financial markets. Sorry.
What I do know, however, is that people have been predicting a financial crash of one form or another in China for decades. Never happened.
Unlike the United States which (sort of) directs and manipulates markets and tries to regulate through central control via banks, the Chinese operate differently. They build up relationships with key individuals. They think in terms of “systems thinking”. They create networks and when situations change, the individual network nodes move to adjust.
It’s a new ballgame. While American and Western financial experts are following 1970’s models of global finance, China has adopted a completely different model.
I cannot tell you that it will be successful or not. What I can tell you is that it and the way it operates is completely alien to anyone in the West. So expect to be disappointed in any newsworthy predictions.
[The Shanghai Market is down 26% in nine months and Hong Kong is down 23% in the same period.]