A: Let's start off with the stuff that really matters, which is things like balance sheets. They've got $3 trillion of Forex reserves. The household bank deposits are double the size of market capitalization of the stock markets and it nearly tripled the size of annual retail sales. So the individual Chinese consumer has a lot of firepower in the bank deposit... Loan-to-deposit ratios are conservative, the capital adequacy ratio at the banks is okay. So those balance sheet items are all in very good order. Current account surplus, small government deficit. So that's not the problem. The problem is really a lack of confidence.
~ Richard Lawrence, "Betting Big on China & Lessons from Bear Markets," We Study Billionaires, 54:30 mark, September 19, 2024
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