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Chinese Firms See Revenues Collapse At Fastest Rate Since 2009
Despite the promise of 6-7% GDP growth forever - fake invoices, intangible accounting, and contracting PMIs aside - based on the Hang Seng China Enterprise Index, revenues for Chinese firms dropped over 7% in Q1 compared to the same period in 2013. This is the largest year-over-year drop since Q1 2009. As China Daily reports, earnings growth remains positive but is at the slowest since Q3 2012...
So if "sales" are down 7%, how is GDP growing 7%? What's Chinese for non-GAAP GDP?
Charts: Bloomberg
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Hey, little Ameru is trying and trying to buy as many cheapo (but acceptable quality) Chinese wheel bearings & assemblies as possible! Moneymakers for us in Peru!
Can't blame us!
What's Chinese for non-GAAP GDP?
That would be "GAAP with Chinese Characteristics."
+1
Not gonna lie, the feeding frenzy on ch13 assets in China, if they hard land like the USSR is going to be awesome. Horrific, but great deals on fixed assets and a intelligent, motivated labour force.
Calling dibbs on Xiaomei. Hell throw in China Aerospace II just to piss off Suck-o-hoi (sic) at 0.5/1.00$. First guy who can make an iphone 6 for $100/unit at $20/unit wins The Game; until Samsung buys you out.
Mr Rat, go ahead and buy those assets when the cities are on fire and population is in revolt. You will get what you pay for.
My money has been on China since 2011. TIMBER!!!!!
This could only mean one thing. New highs tomorrow
Well after all, it IS Tuesday...
Chinese new year
the weather
The smog
They spent it all on gold
"So if "sales" are down 7%, how is GDP growing 7%?"
Goal Seek
False paradox. First depends on what you describe as 'sales' but production could be up by way of inventory growth, R&D or infrastructure investment. I'm not saying this is the case just that it's not necessarily a paradox.
So, in other words, tomorrow I should buy more AAPL, NFLX, LNKD, and FB?
When it comes to creative economic propaganda, China has learned from the best with the U.S. being her daoshi.
1. “Earnings growth remains positive but firms see revenues collapse” sounds familiar?
"So if "sales" are down 7%, how is GDP growing 7%?"
Simple. They report GDP using Absolute Values.
2009? So what? What happened to china in 2009 that was so terrible?
So if "sales" are down 7%, how is GDP growing 7%?
LOL! What difference does it make? We all know these numbers are fake, meaningless. They know it too. What's more, they know that we know it, and we know that THEY know we know it...It's just a ritual from the past reduced to a ceremonial function only. Like the wigs British judges wear, or those ugly jackets they wear in the Stock Exchange. They announce these figures, it's like the blowing of the shofar before the trading begins.
Here's another poker to stick in the fire.
China plans for North Korean regime collapse leaked - Telegraph
N. Korea rations 420 grams of food to each person in April
The above chart accounts for CHINESE-OWNED firms.
GDP is an aggregate of TOTAL production within the borders of the country, which also includes foreign-owned entities.
I'm not saying that China doesn't mainpulate the numbers but you blind naysaying morons need to use your brains more often than just jump on anything that confirms your bearish end-of-the-world views.
If only the world were simple enough for you to be able to you to think in 2 dimensions...
That GDP comment is as shallow and misleading as the very numbers they are shit-canning.
What is it like for Chinese workers when they get laid off or fired?
In the US it is pretty good. We get to attend the best Universities and live there too.
I really don't mind globalists except for bankers and military and climate con men and crooked politicians and devious chemical companies and scumbag no good for nothings that inherited wealth. And those that corrupted the political system to drive out small businesses and drone operators and vaccine givers and the man too concerned over making a buck that the entire world became hostage. Damn ran the flash out of memory and I was just getting started.
Damnit Scotty i need more! Full powah!
sum ting wong
Did you get a good look Costanza???
Corruption has been a huge issue within China for years now more problems are brewing. China has entered a great credit trap and is awash in overcapacity and debt. Much of the recent growth in China after 2008 came from a massive 6.6 trillion dollar stimulus program that expanded credit and poured massive amounts of money into the system. This money encouraged expansion and construction with little regard as to real demand or need.
After several years of growing debt concern is rising the whole unstable pyramid is about to come crashing down bringing China and possibly the global economy with it. This is not just about writing off a few bad loans. The shadow banking sector is so large that concerns exist about contagion and a domino series of defaults that might rack the economy as savers lose money. More on this subject in the article below.
http://brucewilds.blogspot.com/2014/03/china-and-great-credit-trap.html
what do revs have to do with bottom line..... as we see in the ussa... set the bar low and excel...
Just a week after (supposedly) surpassing the US as largest economy.
That didn't last long.