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China Wants To Have The World's Best Navy (Will It Succeed?)

The stock market is now sustained by the easy money printing by the Fed.

Without keep inflating the bubble, it is going to collapse for sure.
Easy money is certainly a factor but not the decisive one. Look at the EU. The lending rate by the european central bank is close to 0.0 percent however the sentiment in the stock markets and real economy is depressing. In my opinion there are two scenarios the US will slip into recession by next year: Donald Trump escalates the trade war with China, EU, Canada, etc, second, the US central bank increases the lending rate by one or two percentage point.

Both would equal economic suicide, so unlikely to happen. Least for Trump as he faces re-election bid next year.
 
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The stock market is now sustained by the easy money printing by the Fed.

It's still better than flowing into the property market.

https%3A%2F%2Fs3-ap-northeast-1.amazonaws.com%2Fpsh-ex-ftnikkei-3937bb4%2Fimages%2F_aliases%2Farticleimage%2F1%2F4%2F3%2F0%2F19310341-1-eng-GB%2F20190214%20China%20property%20price.png
 
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Solar Power exist in 1960s.

That's fine if solar was invented a long time ago in a galaxy far, far away.

I care more about what happens today and tomorrow.

Eight out of the world's top 10 solar panel makers are Chinese, according to IHS Markit. China is by far the world's biggest producer with a 71% market share.

gJbOIDf.png

of32Gte.png


If China can dominate all the emerging industries I mentioned like they dominate solar, that's good enough for me.

And I would not say China innovate 4G and 5G, the Chinese are part of 5G, but 5G is not Chinese invention, and definitely not 4G. 4G is patented by France and Sweden if I remember correctly.

:)

Last year, over 98 percent of the population has been covered with 4G networks as more than 3.7 million 4G base stations have been built. Even residents of Sichuan's "cliff village," one of China's poorest areas, have access to 4G.

http://www.xinhuanet.com/english/2019-09/25/c_138420565.htm

China has 4.37 million 4G base stations and 1.2 billion users.

http://www.chinadaily.com.cn/global/2019-10/15/content_37515552.htm
 
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Easy money is certainly a factor but not the decisive one. Look at the EU. The lending rate by the european central bank is close to 0.0 percent however the sentiment in the stock markets and real economy is depressing. In my opinion there are two scenarios the US will slip into recession by next year: Donald Trump escalates the trade war with China, EU, Canada, etc, second, the US central bank increases the lending rate by one or two percentage point.

Both would equal economic suicide, so unlikely to happen. Least for Trump as he faces re-election bid next year.

Because EU is not a true superpower entity, and the 20 trillion economy is not a country, but a block of countries.

Meanwhile they cannot print money out of nowhere like the US, that's why their economy is much more fragile than either US or China.

But the US now has also fallen into an endless cycle of money printing economy which cannot be lasted for perpetuity.

It's still better than flowing into the property market.

https%3A%2F%2Fs3-ap-northeast-1.amazonaws.com%2Fpsh-ex-ftnikkei-3937bb4%2Fimages%2F_aliases%2Farticleimage%2F1%2F4%2F3%2F0%2F19310341-1-eng-GB%2F20190214%20China%20property%20price.png

It depends, China's housing price has been fluctuated in various cities.

In my native city Shanghai, the housing price is actually fallen in this year.

As China's economy and wage keep growing, this housing bubble is digestible.

Also, the stock market can be melted down within a blink of an eye, whereas the plunge of the housing price will be a much slower process.

China Cancels Plans for Two Nuclear-Powered Super Aircraft Carriers

December 7, 2019 Topic: Security Region: Asia Blog Brand: The Buzz Tags: ChinaAircraft CarrierLiaoningU.S. NavyPacific

Too expensive? Seems so.

by Sebastien Roblin

China’s People’s Liberation Army Navy takes many of its cues from the U.S. Navy as it develops its carrier aviation branch. It is seeking similar flat-deck carriers to its U.S. counterpart, and has developed airborne early warning planes and electronic attack jets comparable to American E-2D Hawkeyes and EA-18 Growlers.

But that tendency may have backfired for once. That’s because the U.S. Navy has been beset by major cost overruns and delays in deploying its new generation Gerald Ford-class supercarriers due to persistent flaws in their catapults, arresting gear, radars and weapons elevators. You can read more about these many problems in an earlier article.

Similar problems apparently are affecting China’s carrier program. On November 28, Minnie Chan of the South China Morning Post reported that Beijing was scrapping plans for a fifth and sixth nuclear-powered carrier, once it finished construction of two new steam-powered vessels.

The reason? “Technical challenges and high costs,” including issues particularly linked to development of the latter two vessel’s electromagnetic launch systems—the same system bedeviling the U.S. Navy.

China’s Truncated Aircraft Carrier Program

For over a decade, China has been steadily building up plans to deploy six aircraft carriers of progressively greater capability.

China’s first carrier, the Type 001 Liaoning, was actually an old Soviet “aircraft-carrying cruiser” purchased by an ex-basketball star from Ukraine, ostensibly for use as a floating casino, and then extensively refitted into a carrier. Considerably smaller than U.S. carriers, the Liaoning features a curved ‘ski jump’ ramp that limits the fuel and weapons payload carried by her J-15 Flying Shark fighters.

The second carrier, launched in 2017—variously designated the Type 001A or Type 002—was China’s first entirely domestically built carrier, and is essentially a modestly improved Type 001.

China’s third and fourth carriers (the Type 002 or Type 003 depending on which nomenclature you prefer) are significantly larger and more capable, with flat, catapult-equipped flight decks that would allow deployment of fully combat-loaded jet fighters.

The final stage of the Chinese carrier program was two even larger flat-deck carriers using nuclear propulsion—intended essentially to be equal in capability to the U.S. Navy’s super carriers.

But rather than adopt the steam catapults used on most flat-deck aircraft carriers, Beijing was determined to steal a technological step by directly adopting next-generation electromagnetic launch systems, or EMALs—currently only featured on two new Gerald Ford class carrier.

U.S. Navy planners have long enthused that EMALs would save billions of dollars in operating costs compared to steam catapults, speed up aircraft operations 25%, and reduce wear-and-tear on aircraft by allowing the amount of impelling force to be fine-tuned according to operational needs.

But unfortunately, Pentagon testing reports revealed that EMALs remained far from mature, exhibited dramatically higher failure rates, and required excessively long times to repair due to the Ford’s distributed power system.

The catapults used by China’s third and fourth-carriers are also experiencing teething issues, according to Chan: “tests of the electromagnetic catapults used to launch the J-15, China’s only carrier-based fighter, had yet to meet the required standard.”

Chan cites a military insider in describing two other factors behind the axing of China’s plans for nuclear-powered supercarriers.

One problem is the need to develop a next-generation carrier-based stealth fighter to succeed the PLAN’s current J-15s. Indeed, there are conflicting reports as to whether China will evolve the lighter, and as yet non-operational J-31 stealth fighter for carrier operations, or develop a naval variant of the larger Chengdu J-20 stealth jet currently in service.

Chan’s source also claimed “China doesn’t possess the nuclear technology required, although it has developed many nuclear-powered submarines.” Apparently carrier’s larger scale needs pose a greater technical challenge.

Prestige versus Combat Power

Beijing may also be having second thoughts on whether springing big bucks for big carriers is the best use of its defense budget. China’s carriers greatest value may lie more in prestige, power projection against weaker adversaries, and building experience for later capability growth, rather than as deterrence against the U.S. Navy.

After all, a six-carrier PLA Navy would still be balancing against eleven higher-capability U.S. carriers. In the past, such naval imbalances in power often resulted in the weaker side’s most valuable ships staying in port rather than sallying forth into likely defeat. Consider the 17 huge Kaiser Wilhelm dreadnaughts built prior to World War I, which saw limited action because they were contained by the 29 dreadnaughts in the Royal Navy.

In a high-intensity conflict with the United States, the PLA Navy would likely struggle to use its carriers without exposing them to unacceptably high levels of risk. Cheaper but still capable surface warships and submarines, as well as land-based missiles and long-range anti-ship bombers offer the PLA Navy a more immediately useable means to contest the western Pacific against a peer adversary.

Debatably, such long-range standoff weapons threaten the future viability of even the United State’s more mature carrier fleet. Adapting supercarriers to survive against them may involve developing new long-range unmanned systems radically different from the Super Hornet and Lightning fighters in current carrier air wings.

Thus, China’s downsizing of its carrier ambitions may leave it with more time to evaluate just what the carriers of the future will really look-like—and whether they’re worth the cost.

Sébastien Roblin holds a Master’s Degree in Conflict Resolution from Georgetown University and served as a university instructor for the Peace Corps in China. He has also worked in education, editing, and refugee resettlement in France and the United States. He currently writes on security and military history for War Is Boring.

https://nationalinterest.org/blog/buzz/china-cancels-plans-two-nuclear-powered-super-aircraft-carriers-103187


Fake news from SCMP.

These HKers simply have no credibility at all.
 
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As China's economy and wage keep growing, this housing bubble is digestible.

Yea, theoretically you can digest the bubble. But the question is, how slowly do you want it to be digested?

China-US-Price-per-Square-Meter-6f3a5e.png


Beijing continued to be the city with the highest pay in the first quarter of 2018, with an average monthly salary of RMB10,197 (USD1,500), slightly down from RMB10,310 in the fourth quarter 2017. Among all major cities in the country, Shenzhen and Hangzhou were the only two cities where the average salary went up in the first quarter of 2018.

upload_2019-12-9_12-38-13.png

https://www.prnewswire.com/news-rel...s-in-the-first-quarter-of-2018-300622146.html

_102611682_us_earnings_growth_640_v2-nc.png

Between 2008 and 2016, individual earnings for full-time workers aged 25 to 64 in the San Francisco metro area, which also includes Alameda and Contra Costa counties, grew by 26% - far faster than in many other large metro areas. By 2016, earnings had risen to $63,000 (£47,200)
https://www.bbc.com/news/world-us-canada-44725026


A month of salary can buy you 0.22 square meters of housing in Beijing.
A month of salary can buy you 1.08 square meters of housing in San Francisco.


Did the Americans complained that SF's housing market is unaffordable and full of bubble?

Also, the stock market can be melted down within a blink of an eye, whereas the plunge of the housing price will be a much slower process.

Lending of the 4 big Chinese banks in recent years are dominated by individual mortgage loans:
https://www.bilibili.com/video/av40766879/

one_20190128094152792.jpg


one_20190128094154797.jpg


Chinese companies by net profit, 10 of the top 15 are banks.
1648bf0355abf463feeeec1e.jpg!custom660.jpg


Which means to say, a huge portion of the profits made by the top profitable Chinese companies (state-owned banks) are derived from your average hardworking Chinese repaying his 30 year mortgage loan on a 70 square meter apartment.

Banks and real-estate made up almost 2/3 of the profits of listed Chinese companies:

2017年A股有将近3500家上市公司,这些公司去年的净利润总共是3.3万亿元。

这3.3万亿元里,41家上市银行的净利润是1.52万亿,占所有上市公司净利润的47.5%,不从事实业生产的银行,坐拥全部上市公司净利润的半壁江山。

银行的净利润快占了全部上市公司净利润的一半,但剩下的将近一半利润并非都属于实体企业。
除了银行之外,上市公司里还有房地产企业、券商和保险。

去年,上市的170家房企,实现净利润5135亿元,占了A股上市公司全部净利润的16%;上市的29家券商,实现净利润约822.66亿元,占了全部净利润的2.5%;上市的4家保险公司,实现净利润约1413.86亿元,占了全部净利润的4.3%。
银行、房地产、券商、保险合起来拿走了全部上市公司净利润的70.3%。

剩下的3200多家公司净利润总和不到1万亿元,但我们的四大国有银行的净利润总和就超过了0.9万亿元。

因为房地产赚钱,而资本永远是逐利的,哪里有钱赚,资本就往哪里流。在近几年房地产的牛市里,大量的资本从实业流向了房地产。

2006年我国制造业权益资本投资回报率(ROE)为6.7%,到 2015年变成了5.4%,还没有贷款利率高。而2008年之后,房地产行业的平均权益资本投资回报率就一直高于10%,哪个赚钱显而易见。

Most profitable companies in the US:
hn63q1cmwvty.png


f2946b8e7527326495fcd9346178fced1ef0a649.png


Almost 80% of Chinese households' wealth is tied up in the property market
Americans households' wealth are more diversified, with the most (42.6%) made up of financial assets (stocks, bonds, insurance, cash etc).

8D93-hrvcwnk9697307.jpg

https://finance.sina.com.cn/china/gncj/2019-01-20/doc-ihrfqziz9287417.shtml

Total Assets in USD (trillions) in the US, EU, Japan, China
Orange: Property market
Blue: Stock market


85474BF6DA5AE8A8433B7E48DF24C91C6587BEB2_size24_w710_h446.jpeg


北上广深四个城市房产总值108万亿,预计2018年全国GDP大概是88万亿,目前四大城市房产总值是全国GDP的122%。
2017年中国房地产总市值430万亿,GDP82万亿,房产总值是GDP的5.24倍。
美国房产总值210万亿人民币(按照汇率6.8换算),GDP130万亿人民币,房产总值是GDP的1.61倍。

日本泡沫顶峰的时候,房产总值是GDP的6.3倍。

Google Translate for non-Chinese speakers:
The total value of real estate in the four cities of Beijing, Shanghai, Guangzhou and Shenzhen is 108 trillion yuan, and the national GDP in 2018 is estimated to be 88 trillion yuan.
In 2017, China's real estate market value was 430 trillion yuan and GDP was 82 trillion yuan. The total value of real estate is 5.24 times of GDP.
The total value of real estate in the United States is 210 trillion yuan (converted at an exchange rate of 6.8), and the GDP is 130 trillion yuan. The total value of real estate (stocks as well) is 1.61 times of GDP.
At the peak of the Japanese bubble, the total value of real estate was 6.3 times of GDP.


As a percentage of GDP, where's the bubble at? Looking at the top companies by profits, which economy is held ransom by a bubble?

Meanwhile, someone here is cheering that the US is going to collapse because the stock market is 'sustained by the easy money printing by the Fed' .
:lol:

12222015FH_002.png


China M2 Money Supply surged by 4x after the Global Financial Crisis in 2008:
china-money-supply-m2.png

https://tradingeconomics.com/china/money-supply-m2
 
Last edited:
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Yea, theoretically you can digest the bubble. But the question is, how slowly do you want it to be digested?

China-US-Price-per-Square-Meter-6f3a5e.png


Beijing continued to be the city with the highest pay in the first quarter of 2018, with an average monthly salary of RMB10,197 (USD1,500), slightly down from RMB10,310 in the fourth quarter 2017. Among all major cities in the country, Shenzhen and Hangzhou were the only two cities where the average salary went up in the first quarter of 2018.

View attachment 593276
https://www.prnewswire.com/news-rel...s-in-the-first-quarter-of-2018-300622146.html

_102611682_us_earnings_growth_640_v2-nc.png

Between 2008 and 2016, individual earnings for full-time workers aged 25 to 64 in the San Francisco metro area, which also includes Alameda and Contra Costa counties, grew by 26% - far faster than in many other large metro areas. By 2016, earnings had risen to $63,000 (£47,200)
https://www.bbc.com/news/world-us-canada-44725026


A month of salary can buy you 0.22 square meters of housing in Beijing.
A month of salary can buy you 1.08 square meters of housing in San Francisco.


Did the Americans complained that SF's housing market is unaffordable and full of bubble?



Lending of the 4 big Chinese banks in recent years are dominated by individual mortgage loans:
https://www.bilibili.com/video/av40766879/

one_20190128094152792.jpg


one_20190128094154797.jpg


Chinese companies by net profit, 10 of the top 15 are banks.
1648bf0355abf463feeeec1e.jpg!custom660.jpg


Which means to say, a huge portion of the profits made by the top profitable Chinese companies (state-owned banks) are derived from your average hardworking Chinese repaying his 30 year mortgage loan on a 70 square meter apartment.

Banks and real-estate made up almost 2/3 of the profits of listed Chinese companies:

2017年A股有将近3500家上市公司,这些公司去年的净利润总共是3.3万亿元。

这3.3万亿元里,41家上市银行的净利润是1.52万亿,占所有上市公司净利润的47.5%,不从事实业生产的银行,坐拥全部上市公司净利润的半壁江山。

银行的净利润快占了全部上市公司净利润的一半,但剩下的将近一半利润并非都属于实体企业。
除了银行之外,上市公司里还有房地产企业、券商和保险。

去年,上市的170家房企,实现净利润5135亿元,占了A股上市公司全部净利润的16%;上市的29家券商,实现净利润约822.66亿元,占了全部净利润的2.5%;上市的4家保险公司,实现净利润约1413.86亿元,占了全部净利润的4.3%。
银行、房地产、券商、保险合起来拿走了全部上市公司净利润的70.3%。

剩下的3200多家公司净利润总和不到1万亿元,但我们的四大国有银行的净利润总和就超过了0.9万亿元。

因为房地产赚钱,而资本永远是逐利的,哪里有钱赚,资本就往哪里流。在近几年房地产的牛市里,大量的资本从实业流向了房地产。

2006年我国制造业权益资本投资回报率(ROE)为6.7%,到 2015年变成了5.4%,还没有贷款利率高。而2008年之后,房地产行业的平均权益资本投资回报率就一直高于10%,哪个赚钱显而易见。

Most profitable companies in the US:
hn63q1cmwvty.png


f2946b8e7527326495fcd9346178fced1ef0a649.png


Almost 80% of Chinese households' wealth is tied up in the property market
Americans households' wealth are diversified, with the most (42.6%) made up of financial assets (stocks, bonds, insurance, cash etc).

8D93-hrvcwnk9697307.jpg

https://finance.sina.com.cn/china/gncj/2019-01-20/doc-ihrfqziz9287417.shtml

Assets in USD (trillions) in the US, EU, Japan, China
Orange: Property market
Blue: Stock market


85474BF6DA5AE8A8433B7E48DF24C91C6587BEB2_size24_w710_h446.jpeg


北上广深四个城市房产总值108万亿,预计2018年全国GDP大概是88万亿,目前四大城市房产总值是全国GDP的122%。
2017年中国房地产总市值430万亿,GDP82万亿,房产总值是GDP的5.24倍。
美国房产总值210万亿人民币(按照汇率6.8换算),GDP130万亿人民币,房产总值是GDP的1.61倍。

日本泡沫顶峰的时候,房产总值是GDP的6.3倍。

Google Translate for non-Chinese speakers:
The total value of real estate in the four cities of Beijing, Shanghai, Guangzhou and Shenzhen is 108 trillion yuan, and the national GDP in 2018 is estimated to be 88 trillion yuan.
In 2017, China's real estate market value was 430 trillion yuan and GDP was 82 trillion yuan. The total value of real estate is 5.24 times GDP.
The total value of real estate in the United States is 210 trillion yuan (converted at an exchange rate of 6.8), and the GDP is 130 trillion yuan.
At the peak of the Japanese bubble, the total value of real estate was 6.3 times GDP.


As a percentage of GDP, where's the bubble at? Looking at the top companies by profits, which economy is held ransom by a bubble?

Meanwhile, someone here is cheering that the US is going to collapse because the stock market is 'sustained by the easy money printing by the Fed' .
:lol:

12222015FH_002.png


china-money-supply-m2.png


The Chinese government has already been started to proactively prick the housing bubble, but not simultaneously on every city, as this will create a bigger burst and loss of steam on the economic growth. Shanghai is the first, then it will be followed by Beijing.

Take my hometown Shanghai for example, my aunt got an apartment from Pudong close to Lujiazui, and she just sold out an apartment for 57k yuan per square meter which was 2.85 million yuan, and now it is down to 47k yuan per square meter which is equivalent to 2.35 million yuan for a 50 square meters apartment.

The area close to Lujiazui of Pudong is some of the most expensive housing area in Shanghai.

Not sure about Beijing and Shenzhen, since I don't have any close relative from there, but I heard the housing price from the suburb areas in Beijing have also started to fall.

BTW, China has 4 times more people than US, and had used more concrete in the last two decades than the US did during the entire 20th century. And we are the head that driven the world's economy, and it is normal that our housing activity is still prevalent.

Japan was always a tiny island, they had nowhere near as much of tangible assets as China.
 
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we are the head that driven the world's economy, and it is normal that our housing activity is still prevalent.

So much so that 80% of Chinese household wealth is tied up in the real estate, and the total property value is worth more than 5x of GDP.

'Socialism with Chinese characteristics' indeed. So 'socialist' such that the most profitable companies are actually state-owned banks making profits through sucking money out of ordinary Chinese from interest on mortgage loans on a small apartment. Privatizing costs, socializing profits, that's 'Socialism with Chinese characteristics' for you.

Meanwhile according to you the US is going to collapse because the stock market is worth 1.6x of GDP. :lol:
 
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So much so that 80% of Chinese household wealth is tied up in the real estate, and the total property value is worth more than 5x of GDP.

'Socialism with Chinese characteristics' indeed. So 'socialist' such that the most profitable companies are actually state-owned banks making profits through sucking money out of ordinary Chinese from interest on mortgage loans on a small apartment. Privatizing costs, socializing profits, that's 'Socialism with Chinese characteristics' for you.

Meanwhile according to you the US is going to collapse because the stock market is worth 1.6x of GDP. :lol:

Nope, the largest real-estate company in China is private, and being owned by those oligarchs who got deep ties with the HK oligarchs like Li Ka-shing. And they are by far the most anti-Xi people from China, along with Li Ka-shing.

https://zh.wikipedia.org/wiki/万科

BTW, the HK model is absolutely toxic, and CPC is going to fix this problem. And our state-owned economy is going to focus more on manufacturing sector.

HK has been kidnapped by the real-estate tycoons for decades, and most people still don't understand the real root of those problems. Since we Mainlanders are much more clever than those illiterate HKers, and we will support CPC to weed out the problems at any cost.
 
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Nope, the largest real-estate company in China is private, and being owned by those oligarchs who got deep ties with the HK oligarchs like Li Ka-shing. And they are by far the most anti-Xi people from China, along with Li Ka-shing.

https://zh.wikipedia.org/wiki/万科

BTW, the HK model is absolutely toxic, and CPC is going to fix this problem. And our state-owned economy is going to focus more on manufacturing sector.

HK has been kidnapped by the real-estate tycoons for decades, and most people still don't understand the real root of those problems. Since we Mainlanders are much more clever than those illiterate HKers, and we will support CPC to weed out the problems at any cost.

Why did you suddenly turn around and compare to HK? So that China's housing problem will look better and you will feel good?

We are on the topic on the US stock market and 'printing money by the Fed', or so according to you.
 
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Why did you suddenly turn around and compare to HK? So that China's housing problem will look better and you will feel good?

We are on the topic on the US stock market and 'printing money by the Fed', or so according to you.

CPC is proactive to fix the deeper problem at the cost of losing some steam of economic growth.

Whereas the Trump admin wants to keep inflating the bubbles to create a sham of the fake prosperity for the re-election bid.

That's the fundamental difference in the attitude between the two government.

BTW, those HK zombies are still clueless about the real problems that caused their own misery.
 
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That's fine if solar was invented a long time ago in a galaxy far, far away.

I care more about what happens today and tomorrow.

Eight out of the world's top 10 solar panel makers are Chinese, according to IHS Markit. China is by far the world's biggest producer with a 71% market share.

gJbOIDf.png

of32Gte.png


If China can dominate all the emerging industries I mentioned like they dominate solar, that's good enough for me.



:)

Last year, over 98 percent of the population has been covered with 4G networks as more than 3.7 million 4G base stations have been built. Even residents of Sichuan's "cliff village," one of China's poorest areas, have access to 4G.

http://www.xinhuanet.com/english/2019-09/25/c_138420565.htm

China has 4.37 million 4G base stations and 1.2 billion users.

http://www.chinadaily.com.cn/global/2019-10/15/content_37515552.htm
You describe the present situation- just a snapshot of time. Means little. Solar is not hightech. You can’t squeeze 101 percent out of the sun rays. Germany once produced lots of solar cells, you can see where it is today. Mark my words: in 5 or 10 years, solar and other light industries will disappear in China.

Yea, theoretically you can digest the bubble. But the question is, how slowly do you want it to be digested?

China-US-Price-per-Square-Meter-6f3a5e.png


Beijing continued to be the city with the highest pay in the first quarter of 2018, with an average monthly salary of RMB10,197 (USD1,500), slightly down from RMB10,310 in the fourth quarter 2017. Among all major cities in the country, Shenzhen and Hangzhou were the only two cities where the average salary went up in the first quarter of 2018.

View attachment 593276
https://www.prnewswire.com/news-rel...s-in-the-first-quarter-of-2018-300622146.html

_102611682_us_earnings_growth_640_v2-nc.png

Between 2008 and 2016, individual earnings for full-time workers aged 25 to 64 in the San Francisco metro area, which also includes Alameda and Contra Costa counties, grew by 26% - far faster than in many other large metro areas. By 2016, earnings had risen to $63,000 (£47,200)
https://www.bbc.com/news/world-us-canada-44725026


A month of salary can buy you 0.22 square meters of housing in Beijing.
A month of salary can buy you 1.08 square meters of housing in San Francisco.


Did the Americans complained that SF's housing market is unaffordable and full of bubble?



Lending of the 4 big Chinese banks in recent years are dominated by individual mortgage loans:
https://www.bilibili.com/video/av40766879/

one_20190128094152792.jpg


one_20190128094154797.jpg


Chinese companies by net profit, 10 of the top 15 are banks.
1648bf0355abf463feeeec1e.jpg!custom660.jpg


Which means to say, a huge portion of the profits made by the top profitable Chinese companies (state-owned banks) are derived from your average hardworking Chinese repaying his 30 year mortgage loan on a 70 square meter apartment.

Banks and real-estate made up almost 2/3 of the profits of listed Chinese companies:

2017年A股有将近3500家上市公司,这些公司去年的净利润总共是3.3万亿元。

这3.3万亿元里,41家上市银行的净利润是1.52万亿,占所有上市公司净利润的47.5%,不从事实业生产的银行,坐拥全部上市公司净利润的半壁江山。

银行的净利润快占了全部上市公司净利润的一半,但剩下的将近一半利润并非都属于实体企业。
除了银行之外,上市公司里还有房地产企业、券商和保险。

去年,上市的170家房企,实现净利润5135亿元,占了A股上市公司全部净利润的16%;上市的29家券商,实现净利润约822.66亿元,占了全部净利润的2.5%;上市的4家保险公司,实现净利润约1413.86亿元,占了全部净利润的4.3%。
银行、房地产、券商、保险合起来拿走了全部上市公司净利润的70.3%。

剩下的3200多家公司净利润总和不到1万亿元,但我们的四大国有银行的净利润总和就超过了0.9万亿元。

因为房地产赚钱,而资本永远是逐利的,哪里有钱赚,资本就往哪里流。在近几年房地产的牛市里,大量的资本从实业流向了房地产。

2006年我国制造业权益资本投资回报率(ROE)为6.7%,到 2015年变成了5.4%,还没有贷款利率高。而2008年之后,房地产行业的平均权益资本投资回报率就一直高于10%,哪个赚钱显而易见。

Most profitable companies in the US:
hn63q1cmwvty.png


f2946b8e7527326495fcd9346178fced1ef0a649.png


Almost 80% of Chinese households' wealth is tied up in the property market
Americans households' wealth are more diversified, with the most (42.6%) made up of financial assets (stocks, bonds, insurance, cash etc).

8D93-hrvcwnk9697307.jpg

https://finance.sina.com.cn/china/gncj/2019-01-20/doc-ihrfqziz9287417.shtml

Total Assets in USD (trillions) in the US, EU, Japan, China
Orange: Property market
Blue: Stock market


85474BF6DA5AE8A8433B7E48DF24C91C6587BEB2_size24_w710_h446.jpeg


北上广深四个城市房产总值108万亿,预计2018年全国GDP大概是88万亿,目前四大城市房产总值是全国GDP的122%。
2017年中国房地产总市值430万亿,GDP82万亿,房产总值是GDP的5.24倍。
美国房产总值210万亿人民币(按照汇率6.8换算),GDP130万亿人民币,房产总值是GDP的1.61倍。

日本泡沫顶峰的时候,房产总值是GDP的6.3倍。

Google Translate for non-Chinese speakers:
The total value of real estate in the four cities of Beijing, Shanghai, Guangzhou and Shenzhen is 108 trillion yuan, and the national GDP in 2018 is estimated to be 88 trillion yuan.
In 2017, China's real estate market value was 430 trillion yuan and GDP was 82 trillion yuan. The total value of real estate is 5.24 times of GDP.
The total value of real estate in the United States is 210 trillion yuan (converted at an exchange rate of 6.8), and the GDP is 130 trillion yuan. The total value of real estate (stocks as well) is 1.61 times of GDP.
At the peak of the Japanese bubble, the total value of real estate was 6.3 times of GDP.


As a percentage of GDP, where's the bubble at? Looking at the top companies by profits, which economy is held ransom by a bubble?

Meanwhile, someone here is cheering that the US is going to collapse because the stock market is 'sustained by the easy money printing by the Fed' .
:lol:

12222015FH_002.png


China M2 Money Supply surged by 4x after the Global Financial Crisis in 2008:
china-money-supply-m2.png

https://tradingeconomics.com/china/money-supply-m2
Interesting stat
I know china stocks markets are a giant bubble. It seems nothing compares to the property market.
 
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CPC is proactive to fix the deeper problem at the cost of losing some steam of economic growth.

Whereas the Trump admin wants to keep inflating the bubbles to create a sham of the fake prosperity for the re-election bid.

So proactive until the total property value is now 5x of GDP huh? Why not start at 1.6x, a level which you claimed that the US will start to collapse? Why didn't China's economy collapse with the real estate bubble at 5x GDP, but the US will with the stock market at 1.6x GDP? Your own fantasy? Mental Gymnastics? 意淫? Ah Q mentality?
 
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So proactive until the total property value is now 5x of GDP huh? Why not start at 1.6x, a level which you claimed that the US will start to collapse? Why didn't China economy collapse with the real estate bubble at 5x GDP, but the US will with the stock market at 1.6x GDP? Your own wishes? Mental Gymnastics? 意淫? Ah Q mentality?

The problem had started long before Xi has taken into power.

Xi wants to prick the bubbles, but the oligarchs are against him, that's why he has amended the constitution.

BTW, the US bubble is not only hidden within the stock market, but within all kind of financial derivatives. They borrow the new debt to pay the old debt, it is literally a bottomless Ponzi scheme.

In comparison, although China's housing bubble is astronomical, but at least you can see where is the bottom, whereas the US bubble is bottomless in comparison, and you don't know how many other bubbles gonna be burst when the bubble of the stock market has been pricked.
 
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Because EU is not a true superpower entity, and the 20 trillion economy is not a country, but a block of countries.

Meanwhile they cannot print money out of nowhere like the US, that's why their economy is much more fragile than either US or China.

But the US now has also fallen into an endless cycle of money printing economy which cannot be lasted for perpetuity.



It depends, China's housing price has been fluctuated in various cities.

In my native city Shanghai, the housing price is actually fallen in this year.

As China's economy and wage keep growing, this housing bubble is digestible.

Also, the stock market can be melted down within a blink of an eye, whereas the plunge of the housing price will be a much slower process.




Fake news from SCMP.

These HKers simply have no credibility at all.
Why do you mean the european central bank can’t print money?
Certainly it does. You missed the news.
The current bench mark rate is 0.0 percent. That means commercial banks can lend the money gratis, zero costs.


https://www.zeit.de/amp/wirtschaft/2019-07/ezb-leitzins-entscheidung-konjunktur
 
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Why do you mean the european central bank can’t print money?
Certainly it does. You missed the news.
The current bench mark rate is 0.0 percent. That means commercial banks can lend the money without costs.


https://www.zeit.de/amp/wirtschaft/2019-07/ezb-leitzins-entscheidung-konjunktur

They can print money, but don't have the same power as the US.

And they also don't have the leverage to export their domestic inflation abroad like the US.

Interesting stat
I know china stocks markets are a giant bubble. It seems nothing compares to the property market.

Our stock market was/is never great.

All our bubbles are hidden within the housing market.

However, the collapse of the housing market would be much slower than a financial meltdown.

In a zero sum game like now, the US cannot afford to have its financial meltdown occurred sooner than China's housing bubble burst.
 
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