Re:China is the manufacturing superpower
by kelipso on Saturday January 04, 2025 @09:42AM
(#42594941)
> returns of Chinese equities
Another phrase for money leaving the country without goods coming in?
Re:China is the manufacturing superpower
by coliveira on Saturday January 04, 2025 @11:37AM
(#42595757)
> returns of Chinese equities vs GDP growth
The equity market is just one place where companies can go to receive investment. In China this is a small part of total investment pool. So, no surprise that these equities don't go as fast as the rest of the economy, there is a lot of competition. In the US this is the reverse because traded companies are allowed to swallow more and more of the real economy.
Instead they have huge manufacturing capacity sitting on top of a completely busted financial system. Look at the returns of Chinese equities vs GDP growth the last 20 years. It is completely absurd.
The financial system is imploding right now, trying to find a place to hide https://tradingeconomics.com/china/government-bond-yield