1 Comment

China's economy struggles?? Please check before writing!

China's economy is red hot.

China's GDP is $30 trillion PPP

5% growth = $1.5 trillion.

$1.5 trillion = more than the GDP of 192 countries.

$1.5 trillion = more than US + EU growth combined.

$1.5 trillion = 30% of global growth*.

YTD, Consumer sales have risen 7.3% YoY, fixed-asset investment 3.4%. The service sector gained 5.7%, and industrial output rose 3.7%. Urban unemployment was 5.3%, lower than last year's 5.4% Popeyes plans 1,700 new stores in China. Hilton to open 730 new hotels in China. Why? China's GDP growth rate is triple the US' & China's middle class is 400 million people. China is the largest #market on earth. “In Q2 2023, revenue growth of Alibaba, Tencent, Baidu, JD, Kuaishou, Bilibili, iQiyi were 13.91%, 11.32%, 14.87%, 7.6%, 27.88%, 8.05%, 17.21% respectively, corresponding net profit growth were 62.58%, 40.53%, 44%, 50.39%, 146.63%, 23% & 282.65%, much higher than revenue.”

The price of hedging China risk on world markets is unchanged. Investors with real money aren’t worried about China’s property market. Credit default swaps, a form of bond insurance that makes creditors whole after a default, are quoted in basis points .001%, above the cost of interbank funding. The cost of default protection on China traded Aug. 18 at 80 basis points, on the lower side of its historic range.

*(America's 1% growth = 9% of global growth).

Expand full comment