Comments by "Godzilla Mothra" (@godzillamothra5983) on "CNBC International News"
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What is the meaningful way in addressing the property crisis according to you? Bailing them with tax payer money like the US did in 2008? I don't think so. China is doing what smart nation do in a crisis, not wasting a crisis. This property crisis is a good moment to teach people not to gamble in property speculation. Something the governments around the world, including China, have failed to do for years. Just like Xi said, house is for living, not speculation. You can hate the guy, but what he said is true. Property speculation for decades have only caused property bubbles, and made housing beyond affordability of common people. Speculation also caused bubbles that in turned turn into massive loss as we saw in US 2008 mortgage meltdown.
As for investing in China, I see no reason not to do that. You just need to pick you cherry. Some companies are still profitable, yet their stocks are falling down. Meaning, it is a once in a lifetime chance to pick steep discounted stocks. For example, Alibaba, it is ridiculous how cheap its stock is currently, even though it is still making money. The fundamental is sound.
The only headwind is the possibility of US-China war. But if it happen, stock market crashing is probably the last thing you worry about.
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@ssuwandi3240 You think China wanted conflict? For decades China is making cheap stuffs to export to the west, and grew out of poverty from it. But China reached a certain point where it is not enough anymore to just relying on being OEM and exporting cheap goods. This is what they called middle income trap. To break out from this trap, China need to have its own corporate champions and China did succeed in creating giant corporations like Huawei, Alibaba, Tencent, DJI, Hisense, TCL, BYD, Nio, and many more. How did the west respond? Well, the US launched a trade war and a so called decoupling that downgraded to derisking. Should China just close shops and back to being OEMs, and forever deemed its citizens to be slaves? Hell no.
Oh and your reasoning that Japan came out of its lost decades because of tourism is hilarious and wrong. For one thing, I'm not even sure Japan is out of the wood yet. Secondly, big economic countries like China and Japan can't just rely on one sector, just like it won't go down just because one sector is in trouble. That's why this so called China is doom because of property crisis theory is also incorrect as we can see from the GDP growth that is still can be considered healthy in many countries.
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