Chinese Economy 2009

Hedge Fund Manager Hugh Hendry Brief Report on the state of the Chinese Economy in Early 2009.

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Category:

News & Politics

Tags:

• Hedge Fund
• Hugh Hendry
• China
• Economy
• Property Development

[sfsTrader]

the chinese state, with the way they are used to thinking and doing things, probably preferred to build everything all at once, then lure in tenants. maybe an inneficient, risky plan but its probably the best they could do. Russia has done many things that dont make sense either, its the communist habit.

sure is quiet in that "central business district"......

[CHUUMPASS]

empty, entire cities in china are empty, the largest mall there is completely empty, the national stadium in beijing, barely used after the olympics, paint peeling of, china is the world´s largest ponzi scheme, internal consumption? in 2009&2010 china claimed economic growth data that simply did not correspond to reality. they are cooking the books,

[HotYoungMaster]

Property buble in developing countries like China and India are fundamentally different from property bubles in developed countries like France, Italy or Spain, simply because developing countries are still in the process of urbanization and more buildings are needed in the long run. These buildings might be empty right now, but remember, there are still over 600 million ppl in China hoping/waiting to move to the cities for much higher quality of life. That's not the case in Europe or US.

[HotYoungMaster]

I remember when they were building the five big airports in the cities around the pearl delta in the late 1990s, in the same cities where these empty buildings are in Guangzhou, Dongguan, Shenzhen, etc, everybody criticized these city officals and thought it was going to be a huge waste. By the time they barely finished building all 5 airports, they found it was not enough to meet the demand for air traffic in the region, because the delta has 100 million residents.

[HotYoungMaster]

@lmubruin His fund was up by nearly 40% in the year to August, but that is not to say he made 40% profit. I don't know how much his fund was when it started or how did it perform last year, but according to the same Economist article which reported his 40% gain this year, "without a sustained fall in asset prices, it is unclear he will make back much more than he spent". I guess that means his fund was losing a lot of money before this year. This 40% gain only made it close to break-even.

[xdizzycowx]

What are the names of these skyscrapers and the cities that they reside in? I know the first black cylindrical one is in guangzhou, but i had no idea it was, or still is, empty. Amazing! Wish this guy would do a follow up.

[lmubruin]

@EyeHeartElliottSmith from what i read, he made 40% up by August this year.

[EyeHeartElliottSmith]

This guy has made an absolute killing in recent months based on this bet.

[PhantomAct]

How much is rent for a typical 30-50 employee office space?

[beastinblack]

@nostalgiamelancolia1 The Japs are hardy people, their geographical shortcomings (earthwquakes, tsunami etc) and their WW2 wipe out have made them tough little cookies.

[beastinblack]

The more humanity advances, the more it is degraded.