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PR Newswire
17-08-2023, 10:11 PM
China is suffering from a crisis of confidence and being over leveraged
--> Real Estate defaults
--> Mutual fund/unit trust are unable to make payouts due to many of their investments tied to real estate/construction
--> Government vehicle funds are in zombie states as national projects were constructed at high cost and quickly since 2013 but revenue collected was low (example is China's High speed rail project because of the low fare charged to the people, the project is in constant operating loss). HSR project is now forced to operate within rational projections as part of the austerity
The only solution in my view is to charge the China citizens much higher for the public service they are utilising, while at the meantime wipe off their savings for their funds tied to fund investments.
Its going to be a major reset but this is due to policy missteps by Xi JinPing goverment since he took office. It is definitely a lost decade for China now with expected defaults and the citizens losing part of their savings
--> Real Estate defaults
--> Mutual fund/unit trust are unable to make payouts due to many of their investments tied to real estate/construction
--> Government vehicle funds are in zombie states as national projects were constructed at high cost and quickly since 2013 but revenue collected was low (example is China's High speed rail project because of the low fare charged to the people, the project is in constant operating loss). HSR project is now forced to operate within rational projections as part of the austerity
The only solution in my view is to charge the China citizens much higher for the public service they are utilising, while at the meantime wipe off their savings for their funds tied to fund investments.
Its going to be a major reset but this is due to policy missteps by Xi JinPing goverment since he took office. It is definitely a lost decade for China now with expected defaults and the citizens losing part of their savings