Ignorant statement , can't even bother to read beyond it .
China is cutting interest rate and simultaneously curbing inflated real estate market . All this to make people invest into the domestic market and stocks. But all efforts of CCP going in vain.
Domestic investor dominated Shanghai index lost 10% in last 5 years and Foreign dominated HK lost 40%. Lost 5T$ in just one year.
People are pulling out of China. Whatever FDI is coming is short term for pre committed projects.
But China's stock market has never been the main investment platform for Chinese people. Because the main body of China's economy is state-owned enterprises, and these enterprises are not listed. The stock market index is very important to the economy of the USA, but not to China.
Moreover, in the past five years, China has experienced trade war, COVID epidemic, energy crisis, US dollar interest rate increase and other events, and still only decreased by 10%. Is this really serious? How much have the US and European stock markets fallen in the past five years?
Hong Kong's stock market has not fallen 40%, and Hong Kong is an independent economy, which has not affected the mainland.
Ignorant statement , can't even bother to read beyond it .
China is cutting interest rate and simultaneously curbing inflated real estate market . All this to make people invest into the domestic market and stocks. But all efforts of CCP going in vain.
Domestic investor dominated Shanghai index lost 10% in last 5 years and Foreign dominated HK lost 40%. Lost 5T$ in just one year.
People are pulling out of China. Whatever FDI is coming is short term for pre committed projects.
Because the USA is raising interest rates and China is cutting interest rates. The overnight lending rate of the Bank of America has reached 3%, and the overnight lending rate of the Bank of China is 0.75%.
Is the temporary rise of the US dollar exchange rate harmful to China? US capital cannot use the US dollar interest rate raising cycle to acquire Chinese assets. Because the Chinese govt has closed the import of foreign hot money, China's FPI will remain low in the US interest rate hike cycle.
The USA cannot maintain such high interest rates forever. Once American interest rates return to normal, China's GDP, which has been pulled down by the exchange rate, will return to its original position. The US will greatly damage its economic growth rate due to the interest rate increase cycle.
BTW: In fact, everyone in this post knows that this interest rate hike will cause great harm to the future American economy.
This interest rate increase will seriously hurt the stock market, property market and other asset platforms in the USA. It will also severely hurt the willingness of Americans to consume and invest. It will also significantly increase the debt ratio of the USA. If it were not for intolerable inflation, Americans would not choose to raise interest rates.
China's interest rate cut will not only reduce its debt, but also help export. To be sure, American capital can use the high dollar to harvest wealth around the world. But American capital can only purchase India, Japan and Europe at most, and they cannot enter China.
Finally, when the USA returns to normal interest rates, they will see a stronger China.