VIDEO: 'Dead Panda Bounce'
Wednesday 13 April 2016 / Hour 1, Block A: Fraser Howie, Red Capitalism: The Fragile Financial Foundation of China's Extraordinary Rise, in re: Anbang offers to buy Starwood Hotels, then walks away — in mysterious circumstances. Casts a shadow on every Chinese investor. Need to double-double check and ask too many questions. The dead-cat bounce: yesterday’s numbers weren’t as ghastly as expected, but the govt refuses to tackle the underlying issues. Anne Yang; “A dead panda bounce.” If you assume that GDP numbers are right, then Chinese growth wd be 6.8; however, we're not even clear about the debt build-up figure. These days people borrow money for a deposit on a house. Try: debt growing twice as fast as GDP. Back to Anbang: there was a strange deal on the Waldorf and a 100-year management contract. As it was offering to buy Starwood, outsiders wondered where hte money was coming rom – assumed that it was govt money and so govt backing, but the deal fell through. A warning to anyone chasing after Chinese cash. “Increased fibbery.” No one believes the Chinese figures – even Chinese negotiators laugh at them. The vastly increased borrowing: unsustainable.
China incurring debt faster than it’s growing ; and: http://www.telegraph.co.uk/business/2016/04/06/chinas-debt-explosion-threatens-financial-stability-fitch-warns/