Beijing’s Holiday Macro Spin Falls Flat
It's almost as if investors have determined that China's a giant Potemkin village -- that the macro data produced by Beijing's statisticians isn't worth much and that Xi Jinping's promises are worth even less.
Mainland Chinese equities managed only pedestrian gains on Monday when onshore trading resumed following the week-long holiday. If you get the Daily, you read my brief recap of the situation on Sunday evening. Official data suggested travel and spending during eight days of Lunar New Year
“Chna’s a giant Potemkin village”….U nailed it Mr. H. That’s all it is. And as the Chinese consumer continues to wither, American and European companies will finally have to conclude that it’s no longer a market that can deliver any growth for them. Maybe Mercedes, Porsche etc. won’t take the American market for granted like they have been for the last 2 decades.
The “knowing everything” attitude is the problem here.
There’s a place for industrial policy and dirigiste initiatives, but capitalism requires that individuals and firms be free to make their own decisions within a clear and stable regulatory structure. China is turning its back on capitalism, which means the market is turning its back on China.