The Anecdotal China Story

August 22, 2009
What Chinese authorities don't want you to see

"This is a seriously large building," says Hendry. "We're talking at least half a billion dollars to construct this thing. It's empty! Who is going to fill this thing? Who is going to pay the debt that that building is resting on?"

August 20, 2009
Great Mall of China isn’t so great

The South China Mall in Dongguan, China sounds good on paper. The holder of the title “World’s Largest Mall” is more than twice the size of the previous record holders, Mall of America in Minnesota and Edmonton Mall in Canada. The building includes nearly 7 million sq. ft. of space and is complete with 8,000 parking spots. It also features amusement park rides, themed outdoor areas, an indoor rain forest, and an artificial canal system.

But there is one thing missing … people

September 9, 2009
China Auto Sales Surge

Manufacturers and dealers have been offering price cuts on their vehicles, in some cases equivalent to a 5% purchase tax cut, to encourage consumers to buy larger models and meet sales targets, Mr. Zhang said.

Last week, a senior minister from China's economic planning agency warned of excess capacity arising in the next few years.

September 4, 2009
Wanted: Greater Fools To Support The Chinese Stock Market

After easy-money assurances failed to prevent a swoon in the Chinese stock market, one imagines the government is now happier than ever to get more liquidity pumping in.

The comment section of that last link is especially worthy of reading. CramerIsAssMonkey's (LOL!) comments led me to the following link.

August 31, 2009
UPDATE 1-Beijing's derivative default stance rattles banks

For banks that are hoping to sell more derivatives hedges in China, the world's fastest-expanding major economy and top commodities consumer, the danger goes beyond the immediate risk to existing contracts to the longer-term precedent that suggests Chinese companies can simply renege on deals when they like.