#Economy #CCP
#GeorgeSoros: Xi’s crackdown on private enterprise shows he does not understand the market economy
The following is an article written by George Soros, the chair and founder of #SorosFundManagement and the #OpenSocietyFoundations and was published in Financial Times.
//Xi Jinping, China’s leader, has collided with economic reality. His crackdown on private enterprise has been a significant drag on the economy.
The most vulnerable sector is real estate, particularly housing. China has enjoyed an extended property boom over the past two decades, but that is now coming to an end.
Evergrande, the largest real estate company, is over-indebted and in danger of default. This could cause a crash.
The crackdown by the Chinese government is real. Unnoticed by the financial markets, the Chinese government quietly took a stake and a board seat in TikTok owner ByteDance in April. The move gives Beijing one seat on a three-person board of directors and first-hand access to the inner workings of a company that has one of the world’s largest troves of personal data. The market is more aware that the Chinese government is taking influential stakes in Alibaba and its subsidiaries.
Xi does not understand how markets operate. As a consequence, the sell-off was allowed to go too far. It began to hurt China’s objectives in the world. Recognising this, Chinese financial authorities have gone out of their way to reassure foreign investors and markets have responded with a powerful rally. But that is a deception.
Xi regards all Chinese companies as instruments of a one-party state. Investors buying into the rally are facing a rude awakening. That includes not only those investors who are conscious of what they are doing, but also a much larger number of people who have exposure via pension funds and other retirement savings...//
Read the full article:
https://www.ft.com/content/ecf7de34-e595-4814-9cbd-4a5119187330
Source: Financial Times #Aug30
#Crackdown #PropertyMarket #CommunistChina #Birthrate #Tiktok #Alibaba #Evergrande
#GeorgeSoros: Xi’s crackdown on private enterprise shows he does not understand the market economy
The following is an article written by George Soros, the chair and founder of #SorosFundManagement and the #OpenSocietyFoundations and was published in Financial Times.
//Xi Jinping, China’s leader, has collided with economic reality. His crackdown on private enterprise has been a significant drag on the economy.
The most vulnerable sector is real estate, particularly housing. China has enjoyed an extended property boom over the past two decades, but that is now coming to an end.
Evergrande, the largest real estate company, is over-indebted and in danger of default. This could cause a crash.
The crackdown by the Chinese government is real. Unnoticed by the financial markets, the Chinese government quietly took a stake and a board seat in TikTok owner ByteDance in April. The move gives Beijing one seat on a three-person board of directors and first-hand access to the inner workings of a company that has one of the world’s largest troves of personal data. The market is more aware that the Chinese government is taking influential stakes in Alibaba and its subsidiaries.
Xi does not understand how markets operate. As a consequence, the sell-off was allowed to go too far. It began to hurt China’s objectives in the world. Recognising this, Chinese financial authorities have gone out of their way to reassure foreign investors and markets have responded with a powerful rally. But that is a deception.
Xi regards all Chinese companies as instruments of a one-party state. Investors buying into the rally are facing a rude awakening. That includes not only those investors who are conscious of what they are doing, but also a much larger number of people who have exposure via pension funds and other retirement savings...//
Read the full article:
https://www.ft.com/content/ecf7de34-e595-4814-9cbd-4a5119187330
Source: Financial Times #Aug30
#Crackdown #PropertyMarket #CommunistChina #Birthrate #Tiktok #Alibaba #Evergrande
Ft
George Soros: Investors in Xi’s China face a rude awakening
The leader’s crackdown on private enterprise shows he does not understand the market economy