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Only 1.31 million cars sold in China in May. How will they survive?
I used to rollerblade on beijing bicycle lanes. The danger came from CARS using those lanes...
They might be buying less cars, but they keep piling up gold.
They just added 4 more tons of gold:
Archaeologists in China are about to uncover an odd treasure: ten thousand tons of 2000 year old Engelhard gold bars.
If you don't fix the leaks in the boat that lead to bailing it out, more bailing will not solve the problem.
Unless you steer your ship to the cliffs, and if you are lucky the ship will stay above water for a while.
AND NO MORE WATER BAILING IS NEEDED!
The 5 year auto plan has likely ended. When government programs end in China, they really end. GM rode the wave. Live by the sword, die by the sword. Keep in mind that our government auto plan ended too (cash for clunkers) . Gradually the two economic models are converging.
German-grown beansprouts likely cause of deadly E. coli outbreak, officials say - AP
Spanish are angry because the Germans blamed their cucumbers for killing Germans!
History repeats again and again:
Zapatero, caudillo de España por la gracia de Dios (german puppet)
Spanish Royal family restored (english puppets)
this is great news for SCHWINN
Jim Rogers still ultra bullish on China although he admits that there is a bubble in urban coastal real estate in China
More jim rogers interviews at http://jimrogers1.blogspot.com
You mean that not everyone on Earth will eventually be a car owner?
"Does have a little Wang in it - can I have some more?"
http://www.youtube.com/watch?v=EMiPjnNF7Dc (comedy gold)
Someone needs to develop a "Fred Flintstone" model and soon.
I actually live here, in Beijing China. This article was obviously written by someone who really has no clue.
Time to tear some shit apart...
CPI: Basic foods are highly regulated in terms of pricing, attempting to manipulate the market will get you locked up for a long long time. Staples are price-controlled and while other increases are taking more money away from city dwellers, farmers are making a killing.
Gas prices: We used to pay approximately $Jack.shit for gas, that has obviously changed. Now 97# is 8.4 a liter and 93# is 7.8 in Beijing, cheaper in the countryside obviously though. Thing is that we have endless other public transit options, so the only real concern is "where the hell can I park?" Rates have been raised to 15 RMB an hour in much of the downtown city.
Other car stuff: There has NEVER been an incentive here to purchase a car. The only "tax break" is the fact that taxes were raised in January. In order to purchase a car now, you have to enter the lottery to get a plate AND you have to be able to provide documentation that you have a place to park it AND you have to have lived here with a steady job for 5 years if you are not a local resident.
Housing prices: Are being deflated in a rather controlled way and it's nice to see (despite my 47w apartment climbing to 300w and now falling back to 250w). Beijing residents are highly restricted on how many properties that can purchase, loan requirements for everything past the first apartment are through the roof and non-residents get to do that whole 5 years with a steady job thing before they are allowedto purchase. Sale prices will be further regulated in order to kill all major speculation before the end of the year.
I would hardly call this a stagflation situation. Wages are going through the roof and quickly. The minimum wage has been raised significantly and income taxes have been revised to remove tax liability entirely from those who earn under 3000 a month. For those earning over 19,000 RMB a month they are seeing an increase in their taxes every month.
Produce prices have gone up some, sure, but it's all still cheap outside the cities (and albeit some prices have doubled in the last year, paying 30 cents a kilo versus 15 cents a kilo is hardly a ball buster). The situation is not even close to as dire as the idiots in the west would love you to believe (hint, it's orchestrated propaganda.. easier to ignore domestic issues when you claim it's worse overseas... and it's easy to do that because it's not like anyone fact checks)
" AND you have to have lived here with a steady job for 5 years if you are not a local resident."
Beijing residents are highly restricted on how many properties that can purchase, loan requirements for everything past the first apartment are through the roof and non-residents get to do that whole 5 years with a steady job thing before they are allowedto purchase.
And what's the ratio of resident to non resident again?
it's around 1:9 beijinger:outsider. However do keep in mind that this has absolutely zero effect on those who already purchased an apartment. It's more or a restriction to cease the damned shanxi coal boss speculation and other speculation.
Another nice perk here is that homeowners pay exactly $0 in property taxes. Businesses however get to pay 5-7% based either on rent or on value. It's almost like it makes sense...
That's not fair. Vancouver allows Chinese to buy cars without having worked here for 5 years. I was hoping to move to Beijing as a retired person.
Foreigners, thankfully, they realized are not the problem. You still have to wait 1 year after your first residency permit before you can buy anything however, and you are highly restricted in terms of mortgages and number of properties you can purchase (it's essentially 1, in all of China that you are entitled to. And you down payment must be at least 50%). Also, unless you have actual family here, yea, you are not going to really be allowed to "retire" in China as a foreigner.
mate, if i were you i'd assume the "brace" position....this birds going down.
Glad to see some truth posted here.
130,000 riots a year - is this true? New unrest in Inner Mongolia.
And what's wrong with your stock market?
You guys in Beijing have it easy when it comes to vehicles compared to Shanghai in respect to licensing. Anyone can buy a car in Shanghai, but the catch is getting a license: Beijing has the lottery, Shanghai auctions approx 5,000 (Shanghai-registered) plates a month.
That means license plates are now about RMB50,000 each (USD7,800), but these are resellable and considered an appreciating asset (like gold) so it does not put people off. I know some people who now have a plate worth more than their old car (Santanas). If you don't get a Shanghai plate, you are restricted from driving at key times and on key roads.
There is absolutely no let-up in the number of people seeking licences, thus the consistently rising plate costs since 1987.
People don't consider themselves to have 'made it' in China until they have 1) an apartment and 2) a car, and that still holds true today despite inflated prices.
It's all honestly still rather tame. Check out what Singapore does with CoEs, it now costs around $50,000 just to have the right to have a car for 10 years. In Beijing, the plates cannot be transferred outside of a very few whacky circumstances which enabled some dealers the ability to make a nice pile of money... but alas that loophole is closed for good now.
In Beijing, if you get caught driving a non-jing plated car during the restricted times inside the city you get slapped with a 200 RMB fine... that's not a "per day" thing like getting caught driving on your off day used to be. It's now per time captured, either by cop or by camera (there are cameras everywhere)
it seems to me that it is now acceptable to use the al dunlap way to count if you are a car manufacture.....
I am sure that the export of good wine to China is going to explode in coming years! Just shows that the chinese are getting culture conscious...and their gourmet tradition will be a bonus for those who like to export quality food...that china doesn't make... Go long on Champagne!
Champagne tastes like Chinese medicine.
You've missed that trade buddy, thats the reason why the 2009 bordeaux went for sky high prices (with the 2010 vintage set to do the same).
Beats me why they pay £13k for a case of 95 Lafite when all they do is mix it with coca-cola. But i guess thats what happens in bubble economies!
Not really, Chinese simply don't know their wines. China is essentially a dumping grounds for wine product that will never sell elsewhere. Domestic Chinese wine has also made a LOT of progress and the major wineries here have recruited top talent from abroad to bring the wine to world class standards. There are excellent grape growing regions in China.
In one thousand months everybody in China will own a car. Then what will they do?
drive down the silk route to Venice on holiday!
They are very industrious.
If I were them, I would make the Great Wall a four lane Tollway.
Wait until a few hundred million there all try to sell their RE at the same time.
The panic rush to exit RE there will be worse then the USA subprime imho.
Yea, here's the fun thing about RE here in China... it's regulated and Chinese are generally not in it for the fast buck, they purchase it in the same way they purchase gold. As an inflation hedge. After the second apartment, you don't get any loans, it's all up front in cash. Furthermore, no one in their right mind here would go off and sell like that, and if it was attempted, the government would step in to stabilize the market... you know, like what a government is suppossed to do.
no mention of government motors.
Weren't they counting on sales in China to save the day?
Channel-stuffing can't go on forever.
Well, thanks for the recommendation to short. So far its working pretty good ....
There goes GMs biggest growth market!
PMs stocks and oil heading lower?
Unlikely with war around the corner in the middle east this summer.. With the financial system broken the last chance would be to ensure the takeover of oil interests .
Goldman & GM
Both taxpayer handouts need to be closed down once and for all.
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