Broker Check

Big Trouble in China

China's real estate market is the source of about 25% of its economy's annual production of goods and services. The real estate market has been under great stress since 2020. Three of China's largest property developers greatly struggled in 2023. by chris@kilmerco.com

References

  • China has Been a Global Growth Engine
  • https://www.weforum.org/agenda/2020/02/countries-manufacturing-trade-exports-economics/
  • https://www.weforum.org/agenda/2019/09/fifteen-countries-represent-three-quarters-total-gdp/

Some Troubles Facing China

  • https://youtu.be/osKFn1WzKIc
  • https://youtu.be/svvz6YaBefY
  • https://youtu.be/tYWpC76kzvU
  • https://youtu.be/4H-rU0BsYOA
  • https://youtu.be/h3-bvrUo8DA
  • https://youtu.be/FBCTVvE68_8
  • https://youtu.be/NeL7tKcaadw

China's Real Estate Market Crumbled

  • https://youtu.be/zXQ1_Ufc0v8
  • https://youtu.be/uXUlnWB_jTA
  • https://www.msn.com/en-us/money/companies/first-evergrande-now-sunac-another-big-chinese-developer-files-for-us-bankruptcy-protection/ar-AA1gWceo?cvid=89920a4fad30489bec5230d25133f651&ocid=winp2fptaskbar&ei=28

Trouble Spread from China's Real Estate Sector to its Financial Services Industry

  • https://www.bloomberg.com/news/articles/2023-08-15/china-s-138-billion-shadow-bank-spirals-at-terrible-time-for-xi
  • https://youtu.be/aFEn15PCbIU

China's Banks Stopped Lending Money

  • https://www.reuters.com/business/finance/china-july-new-bank-loans-tumble-credit-growth-weakens-further-2023-08-11/

China's Financial Markets Were Shocked

  • https://www.investing.com/indices/msci-china-chart
  • https://www.asiafinancial.com/chinas-shock-rate-surge-to-50-triggers-regulatory-probe

Foreign Investors Avoided China

  • https://www.bloomberg.com/news/articles/2023-08-07/china-foreign-investment-gauge-at-25-year-low-amid-high-tensions
  • https://news.bloomberglaw.com/banking-law/china-foreign-investment-gauge-at-25-year-low-amid-high-tensions

The United States Made Matters Worse for China

  • https://www.theverge.com/2022/10/7/23392860/biden-semiconductor-chips-intel-micron-china-ohio-science
  • https://www.msn.com/en-us/news/world/biden-declares-national-emergency-imposes-restrictions-on-some-chinese-investments/ar-AA1fm1ns

China's Government Tried to Hide How Badly China's Economy Was Suffering

  • https://www.businessinsider.com/china-economy-real-youth-unemployment-rate-50-percent-lie-flat-2023-7?op=1
  • https://www.msn.com/en-us/money/companies/china-wants-everyone-to-stop-talking-about-the-terrible-economy-and-presses-pause-on-publishing-youth-unemployment-stats/ar-AA1fiBfh
  • https://www.msn.com/en-us/news/world/china-is-doing-everything-it-can-to-conceal-the-true-extent-of-its-economic-turmoil/ar-AA1fVrc8?cvid=66259323cad84cd891bdae159a871bd5&ocid=winp2fptaskbar&ei=8

China's Government Tried to Prevent a Panic

  • https://www.bloomberg.com/news/articles/2023-06-14/china-convenes-urgent-meetings-on-economy-with-business-leaders
  • https://www.msn.com/en-us/money/markets/china-central-bank-unexpectedly-cuts-rates-to-support-sputtering-economy/ar-AA1fhhPw
  • https://www.msn.com/en-us/money/markets/china-cuts-lending-rates-again-as-it-works-to-curb-economic-slowdown/ar-AA1fzYhp
  • https://abcnews.go.com/International/wireStory/chinas-xi-calls-patience-communist-party-reverse-economic-102333857
  • https://www.bloomberg.com/news/articles/2023-08-16/china-asks-some-funds-to-avoid-net-equity-sales-as-markets-sink



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