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End of the China bull?

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China always does it's dirty work when the world is looking the other way.

Whilst all eyes are on US elections in 30 hours China tightens its State controlled grip over Hong Kong by banning independent legislators and brutally bashing 1000s of protestors in the streets

China tightens grip on Hong Kong.JPG
bashing inocent Tibetan prisoners with long holding poles.jpg
 
No longer a voice in the wilderness am I.

Hardly the best of company, but it's a start -

 
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China’s 'extraordinary leverage' tops Bank of England’s growing list of concerns

China's burgeoning debt levels and rapid rate of credit expansion are singled out as significant red flags, with the report noting a 100 percentage point spike in the country's non-financial sector debt relative to gross domestic product (GDP) since the 2008 financial crisis. The ratio currently stands at around 260 percent of GDP.

"This is extraordinary leverage for an advanced, let alone, an emerging economy," the BOE Governor Mark Carney said at a press conference to launch the report.

The "near-record" pace of net capital outflows from China during the third quarter and a 3 percent depreciation in the Chinese renminbi against the U.S. dollar since the publication of the BOE's July report were also highlighted as reasons for concern.
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Just sayen :cool:
 
Apple has been bending over backwards to comply with Chinese regulators’ demands. Apple has agreed to China’s security checks, moved local user data onto China-based servers, and disabled a news app. Like other foreign companies, Apple views its capitulation to Chinese authorities merely as the price of market access. For a while, the return seemed justify the price tag””sales in China accounted for more than half the company’s growth for several quarters.

But that honeymoon is turning sour. The Chinese government shut down the iBooks store and iTunes Movies. It rejected Apple’s right to trademark the name “iPhone” in China. Apple total sales in China plunged 33 percent in the most recent quarter of 2016, due to stiff competition from home-grown brands such as Xiaomi.

The Chinese Cheating Playbook

The Chinese government has paid lip service to protecting foreign companies’ intellectual property rights. Its actions show it follows a different playbook.

Step 1. Entice foreign companies to China with the allure of a giant consumer market, while forcing foreign companies to share their intellectual properties with a selected few large Chinese companies (so-called “national team”) through ruinous laws and regulations.

For example, according to a Harvard Business Review analysis, “Since 2006 the Chinese government has been implementing new policies that seek to appropriate technology from foreign multinationals in several technology-based industries, such as air transportation, power generation, high-speed rail, information technology, and now possibly electric automobiles. These rules limit investment by foreign companies as well as their access to China’s markets, stipulate a high degree of local content in equipment produced in the country, and force the transfer of proprietary technologies from foreign companies to their joint ventures with China’s state-owned enterprises.”

In 2015, China passed a new cyber-security law, which requires any telecom and Internet companies operating in China to provide Chinese law enforcement with assistance such as decrypting user data when deemed necessary to fight against terrorism. Despite objections from U.S. and European trade groups, the law became effective January 1.

Step 2. Punish foreign competitors to aid domestic companies. For example, Qualcomm, a U.S. technology company, had to pay the Chinese government $975 million to settle an anti-monopoly charge in 2015. In addition to the fine, Qualcomm had to “agree” to offer licenses to some of its cutting-edge technology at a sharp discount to what it charges companies elsewhere.

Step 3. Replace foreign goods and services in key industries with homegrown products and services after Chinese companies obtain the technical know-how. China just announced it has built a supercomputer that performs five times faster than a comparable U.S. one, with 100 percent made-in-China processor chips. Chinese leader Xi Jinping pronounced a goal to replace foreign technology in key strategic areas with homegrown ones by 2020.

Step 4. Shut foreign competitors out of strategic sectors. For example, Facebook is completely blocked in China despite CEO Mark Zuckerberg’s persistent charm offensive””Zuckerberg learned to speak Chinese and jogged through Tiananmen Square without a mask in the midst of suffocating air pollution.
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Trump appoints someone with who 'gets it' to head the White House National Trade Council, - Peter Navarro.
Hopefully a lot of people will watch the film he made to start with

 
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The lunatics really taking over the asylum now. The trumpocalypse will be spectacular if nothing else.

Circle the carts and load the guns.
 
galumay said:
The lunatics really taking over the asylum now. The trumpocalypse will be spectacular if nothing else.

Circle the carts and load the guns.
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Very interesting letter, from someone living in China

http://nationalinterest.org/feature/china-will-probably-implode-16088

Ok lets say that you are right and a catlyst comes along to cause crash....


How do I profit from it??
In essence short any assets linked to Chinese economies success

Direct approach
Go short using OTC derivatives or direct market if you can...

Although the Chinese government may manipulate this,

as they have recently

short china stocks, market index, put options etc etc

Currency will also be a play to make

Indirect Approach
Short firms and industries related to china

Short the negative flow on effects of the crash

Will global equity markets fall initially from the flow on effects??

Or will some competitor countries do even better with China's crash??

Interested to see the bears opinions on plays to make:)

Cheers
 
I'v been saying this for years -
"China wants its currency to become an international currency, but nobody knows its value. The only effective taxation going on here in China is [protectionist] for imports. The taxation system of businesses and income tax is completely broken and non-functional. There is no transparency in the financial system here. That is quite different from that of the Euro or the dollar. The fact is, the government is printing money like crazy here."
Why do our retarded governments let them buy our businesses and real estate with monopoly money the Chinese just print it, invent a business name and a history of the business and go buy a farm in Australia!
 
notting said:
I'v been saying this for years -
"China wants its currency to become an international currency, but nobody knows its value. The only effective taxation going on here in China is [protectionist] for imports. The taxation system of businesses and income tax is completely broken and non-functional. There is no transparency in the financial system here. That is quite different from that of the Euro or the dollar. The fact is, the government is printing money like crazy here."
Why do our retarded governments let them buy our businesses and real estate with monopoly money the Chinese just print it, invent a business name and a history of the business and go buy a farm in Australia!
Click to expand...




First You believe in authority and that everything is perfect, an innocent bliss

Second You realise the world is corrupt but you still believe that there is order

Then The world is bad and corrupt and there is going to be a crash

Then You realise that the truth is a combination of both and by understanding this you realise that
Opportunities arise out of this irrationality,

It is not right, you cannot change it, it does not make sense


but it is part of human nature and the human condition

What is the point in complaining if you are not going to benefit from it?

Chicken little chicken little, the sky is falling

You stuck in world is bad and corrupt phase..

Profit from it if you can, human nature has not changed throughout history

Complaining will not get anybody anywhere

my twocents
 
That letter was pretty much the way I saw it when lived there as well. The biggest single problem the ccp has is the deep rooted culturally engrained corruption. It's just the way they do business and its through every fibre of daily life....the worst of Chinese culture is really toxic.
 
The Trump oligarchy will be orchestrating the markets to suit their own ideals. Leveraging in the right places to grow their empire as the smarter empires do. The supreme capitalist is hard at work.
 

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