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.
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.