China’s Economy Is Slowing, So Why Is Money Flooding Into Its Stock Market?
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- Опубликовано: 13 июн 2024
- Chinese stocks underperformed the rest of the world badly in 2023 and its economy has numerous struggles. Its two largest stock indexes, the Hang Seng and the Shanghai Composite, are both down double digits over the past year. And yet, money is flooding into the country’s stock market.
I explain why some investors are bullish in China, how much money global investors are pouring into Chinese stocks and why the trend might not be what it seems.
Chapters:
0:00 China’s economy and stock market
0:43 Why investors are bullish on China
1:55 Investors pushing money into China
2:24 Why the trend may not be what it seems
I’m Dion Rabouin, a WSJ reporter covering markets and the economy. I’ll be diving into all things finance, from the popular and well-known - like crypto and stocks - to the complex and intricate - like leveraged loans, derivatives and private equity. Subscribe to join me as I take a deep dive into what’s making money move and why it matters.
#China #Economy #DionRabouin
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From last August until now, Katherine C. Boone's forecasts have been remarkably accurate I must confess
Indeed, she has amazing foresight. Months ago, she even brought up BlackRock's possible involvement.
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Bot
This is a scam
super clear
You buy low and sell high. China's downturn is a buying opportunity. America's upturn is selling opportunity. All of these influencers telling you to invest in US stocks now are trying to raise the demand of theirs before they sell. They are hyping them up for profit. Unless you think China will collapse, it's a great buy to hold for 2 years
This is definitely what some asset managers are saying.
China’s downturn has also to do with geo politics, its just to risky to invest in China. This will be the time to prepare on how to decouple or at the least decrease the risk over multiple countries. I don’t see a regime chance around the corner and so the capital flight from China will persist. Also the real estate market is far from stable, the downfall has just begun and it will impact consumer spending for decades to come.
@@jordie4423well that is so in 2023 where we don't know if China can survive US encirclement. but what happen in 2023 was the huawei and BYD break out. Huawei show chinese firm that China chipmaking is matured enough to make competitive chip, this cause other companies like xiaomi and oppa to start hiring their own chip team. BYD grown into the largest EV brand help push China to the largest car exporter in the world, surpassing both Japan and Germany in 1 year. and despite the threat to cut China off from aircraft parts, C919 started passanger services, and even turn up in Singapore for the airshow. this show that US policies has not only failed, but that US has no will to pursuit a tech war with China that could cripple their own companies like Apple, Tesla and Boeing. the decoupling will hurt US more than it does China as US is more dependent on these companies than China are of their counterpart. Huawei, BYD, Comec are relatively a smaller part of their economy. the 2023 showing give confidence that China will displace the US in the world. especially as US trap itself supporting Israel which has become a rallying point in many countries to boycott israel and US. this dumb move that turn the world against US for no reason. US should not have supported genocide, it bad for business.
@@jordie4423 I'm liking China as a cheap opportunity. I think it will be there in 2, 5, and 10 years.
Oof. Us chinese were already awaiting the downward spiral that's gonna succumb the whole chinese economy and here's a foreigner thinking it's a buying opportunity. Seems like a lot of things get blocked by the language barrier.
I am in Japan. We had our smallish savings invested in Japanese stocks, using the buy what you buy paradigm, concentrating on post COVID rebounds. And we did well. But lately the boom in Japanese stocks seems a bit, or a lot, like a bubble. I not really feeling it. Japan may keep booming, but with political scandal especially, it may not. So I put half of our money into a Chinese EFT a little while ago. The stocks fell so we are still down a percent but it jumped 3% today. I came here to see what was happening.
So, it could just be the Chinese government doing a BoJ?
I am going to hold. I teach in a Japanese university. The Chinese overseas students seem the most energetic, healthy, positive.
then explain why the japan and german stock markets are heading upwards when their economy is heading down.
If there's one thing investors have learned over the years,it's that when it comes to China, nothing is certain.
As a Chinese, I agree.😂
So as a Chinese, do you read People's Daily on daily-basis; if so, you would sense the economy is bouncing back Dec 2022, since at that time, the next 5 years plan is pretty clear.
Great Reporting! 👊🏼
Thank you!
This artificial buying will only make it harder for these stocks to continue to grow.
Buy low sell high.....
The high never comes it keeps going down even the chinese goverment is loseing money they bought over 100 billion in stocks past few weeks all down the drain it went
Go ahead! Flush down your hard-earned cash! 🤣
I list money today on my shares in JD :((((
Funny. Even in a booming economy, BABA has STILL been down on a year basis.
government is discouraging monopolies. making it easier for smaller players to eat their market share.
its good that government is discouraging chinese monopoly in manufacturing@@lagrangewei
Investors are not fools, its a buying opportunity.
Great content
China needs Hu Shuli to run the CCDI
She should locked up, as she is merely a bot
i bought postal savings bank of china🎉🎉🎉🎉🎉🎉
Money flooding in because the purchase value is depreciate....
The same philosophy applies....Buy when everyone is selling......Buy...Buy more ..They say China is un-investable if so why is China still selling goods to other countries...
Right now, things seem odd. The US dollar is losing value due to inflation, but it is strengthening in comparison to other currencies and commodities like gold and real estate. Because they believe it to be safer, people are going to the dollar. I'm concerned that the rising inflation may lead my retirement funds to lose value. Where else could we put our cash?
The market has gone berserk! irrespective of experience level, everyone needs a sort of coach at some point to thrive forward.
the current geopolitical reality benefit US. Russia and EU is caught in the destabilizing affect of Ukraine war, the Middleeast is fucked by the Gaza war, China is rebalancing it housing market which would take a year to have a good picture over where it is going. so US look "safe" in 2023. however the data we got in 2023 show a massive increase in chinese economic capabilities instead of stagnation despite the US export limitation. in 2023, the Chinese successfully commericalise their aircraft for service. their car industry is now the largest car exporter, leapforging both japan and germany in 1 year. Huawei begun producing not going their own processors and 5G chip in house, they even started selling AI chip. well before any of us expect. this doesn't mean China will be the hot market, it just mean we underrated it in 2023, it a correction.
the best case for long term investor is still to distribute the fund to avoid risk. the reality is the market is still risky, no matter where you invest, the best you can do is to divide up the risk.
I feel you bud, spend it while it’s worth something
Resale value is your friend, use your money entrepreneur like and buy things in high demand and make more money from your assets than you paid for. Seems to work well for every successful person I know.
Based on personal experience working with an investment advisor, I currently have $1m in a well-diversified portfolio that has experienced exponential growth. It's not only about having money to invest in stocks, but you also need to be knowledgeable, persistent, and have strong hands to back it up.
more like when it comes to the US, nothing is certain
Or they could be booking seats on the titanic 😂
Gist: 3:17
you’re welcome
Good luck getting your money back. I hope these institutional investors don't go crying to Uncle Sam when billions in paper gains are worth nothing because, like Russia, they cannot repatriate their profits.
Yup lol.... I'm shorting Chinese stocks like NIO
China touts they are open for business, though the actions shown tell another story. At best it’s best to look at China as a small slice in a decently diverse portfolio
🤪🤪 delusional
@@inkbold8511 I am not a financial advisor. You can invest how you wish.
@@inkbold8511 I am not a financial advisor. You are free to invest how you may wish.
@@inkbold8511 Nothing wrong with a diversified portfolio.
China deflation could hurt their hands no matter how low PE discounts gets
KWEB -3.5% today. This video does not age well 😂
At the end it weighs between geopolitical issues and companies making profits. By that predecessor the fall of China has not even began yet as China is yet to clarify its future plans on southward territorial expansion. The stock market aren't doing well either, you can check the index fall. The fall of Chinese market will be slow unlike in the west bubble pops as western countries aren't communist. I'd suggest staying out or else the money will be stuck when the time comes. There are better opportunities available to invest.
i am from ASEAN, and your so call southward expansion is just US dellusion. we are already in the Chinese economic bloc, our trade with China exceed China trade with US. the US media talk up some small island in SCS as if that is important to anyone. even if China were to take them, who really cares? the issue isn't about the island, it about the distribution of oil and we want a better spilt than 50/50, that is why we are slowing down talk, but it clear that everything will be decided by negotiation because China want to keep us happy. as for Macro, he has to act the way he does since US can blackmail him, US still holds his family asset in US hostage, but that ain't a issue for ASEAN, philippine has 1 term president, the policy will be correct when he is gone so all this does is delay the talk, buying ASEAN more time to get a better deal.
people tend to forget that ASEAN has communist countries. and western hostility to communism make it hard for us to trust the west. we are not going to have an iron curtain in ASEAN dividing the capitalist from communist. this kind of thinking would only force us to seek closer relation with country that don't care.... like China and India.
@Boney.M.
Pot calling kettle black 🤪
How many that
it's called " catching a falling knife "
good luck with that
thank you so much, it's like a compliment for our country, my personally opinion dont think it's a good timing for investing in our country. because our economy isn't great and it's pretty vulnerable atm, i think with the perfect storm which geopolitical uncertainty ahead, our country is like japan was in 90s , our country is like in our lost decade, that's why our asset looks cheap but if you're institutional investors ,I dont think it's a good timing for invest in our country.
Contract manufacturing can be easily moved from China to Vietnam, Phillipines, Taiwan.
@an-jp4zz China can't survive on High end manufacturing alone.
@@Jonathan-jp4zzhe did not mention India for a good reason
The world depend on China EV, battery, drone, rare earth metal, solar, 5g and etc... Not the other way around.
@ris1582 The world used to be dependent on China with garments, appliances, plastics and furnitures.
But look at we're now. Most garments production moved to Bangladesh and Vietnam.
Appliances moved to Thailand, Mexico, Malaysia, India and Indonesia.
Cheap plastics products moved to India, Indonesia and Vietnam.
Cheap electronics like headset, mouse or keyboard moved to Vietnam and India.
It won't be long till battery, solar, and other higher end products moved out of China too.
@@Jonathan-jp4zz Yes, the same way japanese, taiwanese, and south korean companies do business.
Problem is, the economic benefits and the tax revenue now goes to vietnam and these other countries.
Those chinese factories owners tend to move permanently to these countries as well.
I know few of them in Indonesia who permanently moved to Karawang area.
To the Chinese people living aboard : Your Lives or Your money ?
So with their stock market in the toilet a good time to invest if you’re an optimist, China has many many problems. Xi just said traders should not pursue hedonism, only pleasure has worth thinking. So apparently making money is bad.
I've been thinking about investing in a China Tech Stock ETF. Obviously I'm not the only one
Getting your money out of china gonna be difficult.
It’s the Chinese government propping up something that’s doomed to go down even further.
I have. Kweb.
China needs ur money in china they are broken.
Really nice video! i was wondering if i could help you edit your videos , I know you have great videos but it will save your time.
It hasn’t work for decades, it’s not going to work now or ever. Eventually you’ll lose money
It's worked in some years, quite a few of them, actually. But in many other years, like last year, investing in China has been rough.
@@DionRabouinWSJ I think if you are long term investor in China stock market, you would lose a lot of money, am I correct? The GDP has increased tremendously, but the stock market has not reflect that in China.
@@TheAsiandramafreakthe GDP has nothing to do with the health of the economy and stock based companies. It has been generated by massive exports and rising investments in infrastructure and housing. Real estate will go down for some time and capital flight from China has only just begun. Regime change is not around the corner so things might worsen, the real estate bubble popping whipped out the consumer base in China.
@@TheAsiandramafreakalot of companies are private and not listen in stock market. so the chinese stock market is not as reflective of economic reality in in more developed economies.
I am not gonna Invest there
Buy Low Sell High
Just shows you how the west can turn off the switch pretty quickly, no war needed
just like they did with russia
it actually show the opposite. despite expectation that 2023 would be a terrible year for China, they became the largest car exporter, overtaking BOTH Japan and Germany in the same year. developed their own CPU, 5G and AI chip which we thought were impossible, and launch their own airliner. the west still seem to be in a dellusion that they are isolating China. until recently where the chief EU diplomat acknowledge the danger that it is the West that has isolated itself, and it isn't "China vs the rest", it is "West vs the rest" especially after the hostility West has created by support Israel in a genocidal war. that gave the world something to rally around the BRICS over, and South Africa's move in ICJ was a masterstoke, they have allow BRICS to capture the moral high ground, allowing Brazil and China to take advantage of African leadership which has previously never existed in the world... the West is about to lose the South to China.
Rule of thumb. Dont believe what china says but what it does.
🧐
he's correct mate @@DionRabouinWSJ
This aged well😅
communist party say thank you
To obtain financial freedom, one needs to be a business owner, an investor, or both, generating passive income, particularly on a monthly basis.
Hahaha this is cringe. Is WSJ owned by China?
fact is cringe... that is when you know you have become dellusion and fear fact.
talking rubbish
A communist system is great in theory, wonderful, but in practice a huge failure. Capitalism with all its fault’s a much more workable system as moving from Mao to Deng good and back to Mao like Xi, a flawed system. But Xi will try, no matter the costs convinced the dictator is always right, and surrounded by yes men, who completely agree with him. Commendable for their zeal but not the results.
可笑的報導
建議把你自己全部的資產壓在中國股市
China is serious about being competitive, productive and efficient. Small setback can't stop that. Cheap Russian oil and pig supply recovery from swine flu cause the deflation rather than real estate. China growth is still going.
@@TH-dr1kg no doubt the housing market is in a sort of crisis. local governments won't let it free fall because thoughout the economic rise of CN, their income was comprised of landsales to constructing firms who in term sold property on said land to third parties. but Beijing had, years prior to the pandemic, made clear that china can't rely on housing as their main investment and thus set off a long, slow decline. Slow, probably for those who are quick enough and well connected to react accordingly and figure out a way to save their assets
@@TH-dr1kg Soo, they got 5,2 growth while bursting a housing buble, seems like good news for them.
China’s downturn has also to do with geo politics, its just to risky to invest in China. This will be the time to prepare on how to decouple or at the least decrease the risk over multiple countries. I don’t see a regime chance around the corner and so the capital flight from China will persist. Also the real estate market is far from stable, the downfall has just begun and it will impact consumer spending for decades to come.
@@jordie4423 well that is so in 2023 where we don't know if China can survive US encirclement. but what happen in 2023 was the huawei and BYD break out. Huawei show chinese firm that China chipmaking is matured enough to make competitive chip, this cause other companies like xiaomi and oppa to start hiring their own chip team. BYD grown into the largest EV brand help push China to the largest car exporter in the world, surpassing both Japan and Germany in 1 year. and despite the threat to cut China off from aircraft parts, C919 started passanger services, and even turn up in Singapore for the airshow. this show that US policies has not only failed, but that US has no will to pursuit a tech war with China that could cripple their own companies like Apple, Tesla and Boeing. the decoupling will hurt US more than it does China as US is more dependent on these companies than China are of their counterpart. Huawei, BYD, Comec are relatively a smaller part of their economy. the 2023 showing give confidence that China will displace the US in the world. especially as US trap itself supporting Israel which has become a rallying point in many countries to boycott israel and US. this dumb move that turn the world against US for no reason. US should not have supported genocide, it bad for business.