The JSE and finance forum for South Africa
General Category => Shares => Topic started by: Orca on August 12, 2015, 09:43:26 pm
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We all heard that China devalued the Yuan yesterday and once again today. They did not only devalue their currency but devalued the world markets with it.
What makes me worried is how they artificially inflated their growth since the 2007/8 collapse. They built whole new cities with high rise building with malls unparalleled in size anywhere. Today they are all empty of people as they cannot afford the prices. 64 Million apartments are still empty in these new cities.
Is this why they reduced the import of copper and iron causing the price drop in these commodities? They have stopped building these cities and this may be the main cause of the stagnation of the markets of late.
Am I crazy or what? Here is a video of these empty cities.
https://www.youtube.com/watch?v=wm7rOKT151Y
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http://blogs.reuters.com/great-debate/2015/04/21/the-myth-of-chinas-ghost-cities/
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Well, SA Schools will introduce Mandarin to the official syllabus next year - China might be preparing for a influx form SA in near future - I won't mind living in those ghost towns, looks clean and peaceful.
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Companies like "Rather not give names" actually get their main buyers to go for Mandarin lessons. What I have learned is Chinese sales can speaks english, but once u place orders, Quality control / Manufacturing cannot speaks english.....
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Strange that those buildings are still intact after years. Had they been in SA, after a few days, all the fittings would be missing and a week later only the foundations would be left.
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Well I hope it is all equipped with WiFi, will be good for my NPN shares :TU:
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I'm living in China since 2013 near Shanghai. Even though those cities were empty, they will eventually by filled because the Central Government is placing limits on how many people can stay in Beijing, Shanghai and Guangzhou, the 3 biggest metropolitan cities. There are 5 controlled directly by CPC.
Anyway as the consumer spending increases with the largess from the middle class, you can expect the growth to remain above 5% for the next 10 years. This is my opinion.
Watch out for the spending that will take place on New Silk Road (One Belt, One Road) projects.
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I though to share some of my thoughts here. The Rand performance relative to other emerging markets currencies confirms the deflationary pressure and the dollar status of safe haven. I am reading in this form that people are considering moving liquid cash into SA at the present time. Anyway - I have been following this forum for year but registered now just to be able to add this comment. It is my personal take, so pinch of salt - read more if you want to here - http://tradeforexsa.co.za/china-turmoil-hits-the-sa-rand/ (http://tradeforexsa.co.za/china-turmoil-hits-the-sa-rand/)
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Welcome to the forum RARCA and thanks for the good post. :TU: