China Rolls out Emergency Measures to Prevent Stock Market Crash

Risay117 · July 05, 2015, 11:41:05 PM

News Story

So apparently the Chinese economy fell 30% in the last couple weeks which spread panic around the country. Sadly as i have little to no understanding of the economy of China and how business is done or the type of issues they deal with, I am unable to figure out what is actually going on.

Still though this does bring questions and fear to the economy of the country that was once marveled as the growing economic power in the world. If anything it may make potential investors wary of entering the fray. Still i wonder what caused it.

Comet · July 05, 2015, 11:48:01 PM

this has been a long time coming, iirc.
the ghost cities were just inflating everything to make it all look good.

Naoto · July 05, 2015, 11:48:41 PM

Can only build entire ghost cities to prop up your growth numbers for so long.

Edit: fucking Comet'd again. ffs.

Risay117 · July 05, 2015, 11:55:05 PM

Quote from: Comet on July 05, 2015, 11:48:01 PM

this has been a long time coming, iirc.
the ghost cities were just inflating everything to make it all look good.

The ghost cities seem to be another problem. Apparently they are not that big of an issue as people think they are. Mainly they are built in preparation for migration of people from the country to the city. So instead of suburbs they build ghost towns which are filled up in a couple years. Not immediately but in like 5 to 6 years.

Example certain parts of Shanghai were once ghost cities.

Link
Quote from the article:
"But while building the core areas of new cities is something that China does with incredible haste, actually populating them is a lengthy endeavor"

Apparently once vital utilities and infrastructure like transit are put in place does the growth begins. So apparently calling them ghost cities seem to be a bit of a premature argument.

Comet · July 06, 2015, 12:29:45 AM

Quote from: Risay117 on July 05, 2015, 11:55:05 PM

Quote from: Comet on July 05, 2015, 11:48:01 PM
this has been a long time coming, iirc.
the ghost cities were just inflating everything to make it all look good.

The ghost cities seem to be another problem. Apparently they are not that big of an issue as people think they are. Mainly they are built in preparation for migration of people from the country to the city. So instead of suburbs they build ghost towns which are filled up in a couple years. Not immediately but in like 5 to 6 years.

Example certain parts of Shanghai were once ghost cities.

Link
Quote from the article:
"But while building the core areas of new cities is something that China does with incredible haste, actually populating them is a lengthy endeavor"

Apparently once vital utilities and infrastructure like transit are put in place does the growth begins. So apparently calling them ghost cities seem to be a bit of a premature argument.

last i heard, which admittedly was a while ago, the economies in the ghost cities were poor.
but your info could be right. some of them could be/are doing fine, but others could be/are a massive waste of investment on the government's part. even if they will "be fine in 15 years".

More Than Mortal · July 06, 2015, 04:11:59 AM

The stock market weaknesses probably represent underlying issues in the economy itself. If I had to hazard a guess, it'd be the excessive leverage built up following 2008.