Breitbart Business Digest: Big Trouble in Big China

  • 📰 BreitbartNews
  • ⏱ Reading Time:
  • 60 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 27%
  • Publisher: 51%

Business News News

Business Business Latest News,Business Business Headlines

A Hemingway character famously describes his bankruptcy as happening “gradually and then suddenly.” This week, investors began to worry that China has entered the 'suddenly' stage of its financial decline. | Economy

, a character named Mike Campell is asked how he lost his fortune.“Two ways,” Campell replies. “This week investors began to worry that China had entered the second stage of Campell’s financial stress., once the largest property developer in China and is now thought to rank second, declared bankruptcy under U.S. law on Thursday. It is estimated to have aroundCountry Garden

missed bond interest payments and suspended trading for its bonds. Moody’s Investors Service cut its rating further into junk-bond territory. On Friday, the company’s shares were dropped from Hong Kong’s Hang Seng Index. Shares are down more than 70 percent year-to-date.Growth in consumer spending is moribund. Industrial production is limping. Investment is staggering. Youth unemployment has gotten so bad that the Chinese government announced the official statistics had become a state secret.

Economic growth slid to 0.8 percent in the three months ending in June compared with the previous month, down from 2.2 percent in January-March. To put it in the annualized terms that U.S. readers are familiar with: this is. That’s far below the five percent Chinese officials say they are targeting.from May’s estimate of 6.4 percent to 4.8 percent. Next year is seen as coming in even weaker, at 4.2 percent. Nomura said it sees a bigger downside risk to its forecast of 4.9 percent growth.

The onshore yuan on Wednesday fell to a 16-year low, with a dollar reaching 7.2981 yuan. On Friday, it was slightly stronger, with one dollar fetching 7.2895 onshore yuan.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 610. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

How home-schooling left the kitchen table and became a big businessMoney from investors, nonprofits and vouchers has fueled home-schooling's growth. In many cases, parents aren't doing the teaching.
Source: washingtonpost - 🏆 95. / 72 Read more »