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$55 Billion Stock Crash Underscores China’s ‘Inevitable’ Date With Deflation
Earlier this month, PDD founder Colin Huang usurped water baron Zhong Shanshan atop the list of Chinese billionaires.
As of August 19, Huang, a former Googler, was worth more than $53 billion on paper, $3 billion short of his own, personal net worth record, but enough to make him the richest man in China.
That's a crown I wouldn't want, frankly. Particularly not as a tech founder. Xi Jinping harbors what, at times, looks like a pathological aversion to excess. That can manifest in ways that ar
My question is what 2nd and third order effects for the world economy and geopolitics will happen from China’s floundering economy.
Anyone have an estimate of Temu (PDD’s US operator) results? I see PDD’s YOY rev gro was ~50% until 3Q23, when it started the surge to ~120% that ended in 2Q24. How much of that was Temu? The reason one might care is that Temu and Shein have been a significant part of GOOG and META’s recent revenue growth, and that contribution may be starting to slow. From META’s 2Q call “On an advertiser geography basis, total revenue growth continued to be strongest in Asia Pacific at 28%. Though growth was below the first quarter rate of 41%, as we lapped a period of stronger demand from China-based advertisers.”
rumors are that he wants to avoid the fate of being the richest guy in China.
Noticed this in Caixin
“Beijing’s major food and beverage (F&B) companies saw their combined profits slump almost 90% year-on-year in the first half of the year, government data show, underscoring the weak state of consumption in China’s big cities amid the country’s patchy post-Covid recovery.
In the January-to-June period, their total profits nosedived 88.8% year-on-year to 180.3 million yuan ($25.3 million), according to recently published data by the Beijing Municipal Bureau of Statistics covering firms whose F&B annual revenue is at least 2 million yuan.”
I had no idea that Chinese homeowners are prohibited from refinancing mortgages. This may change, sayeth here https://www.bloomberg.com/news/articles/2024-08-30/china-mulls-allowing-refinancing-on-5-4-trillion-in-mortgages but how many of those mortgages are underwater?