Apr 30, 2010

Donald Tang on the Chinese Bubble and China's effective stimulus efforts

Last year, people talked about, "They can't make 8% [growth], it will be 2% or negative." Today, everyone talks about how it's uncontrollable, [the growth] will keep on going 10, 15, 20%, the bubble is going to burst. The same people who were talking about not making [the growth targets] now are talking about too much [growth]. The fact of the matter is that they are, or they were ahead of the curve of the cycle. [The Chinese government] put out a very effective stimulus package that led us out of the depression-like kind of recession.

And now, they are ahead of the curve again doing the recapitalization of the banks and taking the administrative measures to make sure that property prices do not get out of control. So, all of those things tell me that the leadership in China is really paying attention.

Everything else that they talk about in the media is noise. [The Chinese government] is really doing a good job of trying to stay ahead of the curve.

~Donald Tang, CEO, Citic Securities International Partners, CNBC Closing Bell, April 29th, 2010

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