Eq: Asia

(Beijing)

It is often hard to get a handle on how the Chinese economy is doing. The country’s government controls information very tightly, which makes the whole nation a black box. However, with coronavirus fears in full flourish there is some additional insight available, and it is worrying. Factories across the country have been shut as part of an effort to contain the disease, and even tech workers are working remotely. All over the country, from Beijing to Shanghai, to industrial provinces, workers are not reporting to factories (following government advice to stay home). Even today, as some parts of the country were supposed to return to work, many are not.


FINSUM: The Chinese economy seems to have completely stopped. It is hard to imagine there will not be a significant recession this quarter in China, which could reverberate all over the world.

(Beijing)

The new SARS/Coronavirus that has broken out in China has been serious enough that it has actually spooked markets. 17 people have already died and 600 more have the pathogen, which is as yet poorly understood. Now the city where it was first found, Wuhan, has been quarantined. However, the quarantine has been greatly undermined by the fact that it was instituted after the country’s biggest annual migration—the Lunar New Year, when Chinese go home to visit family. One the big worries is that the virus seems to have “superspreading” characteristics, or the kind of virus that spreads much more rapidly from person to person than normal.


FINSUM: This is a pretty scary bug, and the US already had its first confirmed case (a man in Seattle that had come directly from Wuhan).

(Beijing)

China’s newest GDP data has just come in and it is shockingly weak. Third quarter GDP growth was the lowest in has been since the early 1990s and appears to show the sting of US tariffs. Growth was just 6%, a major sign of the weakening state of the global economy. That is the same level of growth as in the late 1980s, though China’s economy is now far larger. Those paying attention will know that China’s economy grew at around 7-8% per year since the Crisis.


FINSUM: So this is an admitted 6%. Beijing keeps very tight control of its economic data, so it is not inconceivable that the real number is actually lower.

Page 1 of 2

Contact Us

Newsletter

Subscribe

Subscribe to our daily newsletter

Top
We use cookies to improve our website. By continuing to use this website, you are giving consent to cookies being used. More details…