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The Investor Sentiment - Equity and investments forum for Sri Lankans

The Lankan Investor Forum - A more respectable and reasonable place for members to discuss matters regarding the CSEThe Lankan Investor Forum - A more respectable and reasonable place for members to discuss matters regarding the CSE

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Latest topics

» CCS.N0000 ( Ceylon Cold Stores)
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyWed Mar 20, 2024 11:31 am by Hawk Eye

» Sri Lanka plans to allow tourists from August, no mandatory quarantine
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyWed Sep 13, 2023 12:16 pm by lauryfriese

» When Will It Be Safe To Invest In The Stock Market Again?
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyWed Apr 19, 2023 6:41 am by කිත්සිරි ද සිල්වා

» Dividend Announcements
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyWed Apr 12, 2023 5:41 pm by කිත්සිරි ද සිල්වා

» MAINTENANCE NOTICE / නඩත්තු දැනුම්දීම
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyThu Apr 06, 2023 3:18 pm by කිත්සිරි ද සිල්වා

» ඩොලර් මිලියනයක මුදල් සම්මානයක් සහ “ෆීල්ඩ්ස් පදක්කම” පිළිගැනීම ප්‍රතික්ෂේප කළ ගණිතඥයා
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptySun Apr 02, 2023 7:28 am by කිත්සිරි ද සිල්වා

» SEYB.N0000 (Seylan Bank PLC)
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyThu Mar 30, 2023 9:25 am by yellow knife

» Here's what blind prophet Baba Vanga predicted for 2016 and beyond: It's not good
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyThu Mar 30, 2023 9:25 am by HaeroMaero

» The Korean Way !
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyWed Mar 29, 2023 7:09 am by කිත්සිරි ද සිල්වා

» In the Meantime Within Our Shores!
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyMon Mar 27, 2023 5:51 pm by කිත්සිරි ද සිල්වා

» What is Known as Dementia?
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyFri Mar 24, 2023 10:09 am by කිත්සිරි ද සිල්වා

» SRI LANKA TELECOM PLC (SLTL.N0000)
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyMon Mar 20, 2023 5:18 pm by කිත්සිරි ද සිල්වා

» THE LANKA HOSPITALS CORPORATION PLC (LHCL.N0000)
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyMon Mar 20, 2023 5:10 pm by කිත්සිරි ද සිල්වා

» Equinox ( වසන්ත විෂුවය ) !
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyMon Mar 20, 2023 4:28 pm by කිත්සිරි ද සිල්වා

» COMB.N0000 (Commercial Bank of Ceylon PLC)
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptySun Mar 19, 2023 4:11 pm by කිත්සිරි ද සිල්වා

» REXP.N0000 (Richard Pieris Exports PLC)
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptySun Mar 19, 2023 4:02 pm by කිත්සිරි ද සිල්වා

» RICH.N0000 (Richard Pieris and Company PLC)
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptySun Mar 19, 2023 3:53 pm by කිත්සිරි ද සිල්වා

» Do You Have Computer Vision Syndrome?
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptySat Mar 18, 2023 7:36 am by කිත්සිරි ද සිල්වා

» LAXAPANA BATTERIES PLC (LITE.N0000)
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyThu Mar 16, 2023 11:23 am by කිත්සිරි ද සිල්වා

» What a Bank Run ?
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyWed Mar 15, 2023 5:33 pm by කිත්සිරි ද සිල්වා

» 104 Technical trading experiments by HUNTER
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyWed Mar 15, 2023 4:27 pm by katesmith1304

» GLAS.N0000 (Piramal Glass Ceylon PLC)
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyWed Mar 15, 2023 7:45 am by කිත්සිරි ද සිල්වා

» Cboe Volatility Index
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyTue Mar 14, 2023 5:32 pm by කිත්සිරි ද සිල්වා

» AHPL.N0000
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptySun Mar 12, 2023 4:46 pm by කිත්සිරි ද සිල්වා

» TJL.N0000 (Tee Jey Lanka PLC.)
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptySun Mar 12, 2023 4:43 pm by කිත්සිරි ද සිල්වා

» CTBL.N0000 ( CEYLON TEA BROKERS PLC)
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptySun Mar 12, 2023 4:41 pm by කිත්සිරි ද සිල්වා

» COMMERCIAL DEVELOPMENT COMPANY PLC (COMD. N.0000))
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyFri Mar 10, 2023 4:43 pm by yellow knife

» Bitcoin and Cryptocurrency
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyFri Mar 10, 2023 1:47 pm by කිත්සිරි ද සිල්වා

» CSD.N0000 (Seylan Developments PLC)
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyFri Mar 10, 2023 10:38 am by yellow knife

» PLC.N0000 (People's Leasing and Finance PLC)
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyThu Mar 09, 2023 8:02 am by කිත්සිරි ද සිල්වා

» Bakery Products ?
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyWed Mar 08, 2023 5:30 pm by කිත්සිරි ද සිල්වා

» NTB.N0000 (Nations Trust Bank PLC)
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptySun Mar 05, 2023 7:24 am by කිත්සිරි ද සිල්වා

» Going South
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptySat Mar 04, 2023 10:47 am by කිත්සිරි ද සිල්වා

» When Seagulls Follow the Trawler
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyThu Mar 02, 2023 10:22 am by කිත්සිරි ද සිල්වා

» Re-activating
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptySat Feb 25, 2023 5:12 pm by කිත්සිරි ද සිල්වා

» අපි තමයි හොඳටම කරේ !
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyTue Feb 14, 2023 3:54 pm by ruwan326

» මේ අර් බුධය කිසිසේත්ම මා විසින් නිර්මාණය කල එකක් නොවේ
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyTue Jan 03, 2023 6:43 pm by ruwan326

» SAMP.N0000 (Sampath Bank PLC)
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyWed Nov 30, 2022 8:24 am by කිත්සිරි ද සිල්වා

» APLA.N0000 (ACL Plastics PLC)
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyFri Nov 18, 2022 7:49 am by කිත්සිරි ද සිල්වා

» AVOID FALLING INTO ALLURING WEEKEND FAMILY PACKAGES.
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyWed Nov 16, 2022 9:28 pm by කිත්සිරි ද සිල්වා

» Banks, Finance & Insurance Sector Chart
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyTue Nov 15, 2022 5:26 pm by කිත්සිරි ද සිල්වා

» VPEL.N0000 (Vallibel Power Erathna PLC)
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptySun Nov 13, 2022 12:15 pm by කිත්සිරි ද සිල්වා

» DEADLY COCKTAIL OF ISLAND MENTALITY AND PARANOID PERSONALITY DISORDER MIX.
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyMon Nov 07, 2022 6:36 pm by කිත්සිරි ද සිල්වා

» WATA - Watawala
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptySat Nov 05, 2022 8:44 am by කිත්සිරි ද සිල්වා

» KFP.N0000(Keels Food Products PLC)
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptySat Nov 05, 2022 8:42 am by කිත්සිරි ද සිල්වා

» Capital Trust Broker in difficulty?
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyFri Oct 21, 2022 5:25 pm by කිත්සිරි ද සිල්වා

» IS PIRATING INTELLECTUAL PROPERTY A BOON OR BANE?
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyThu Oct 20, 2022 10:13 am by කිත්සිරි ද සිල්වා

» What Industry Would You Choose to Focus?
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyTue Oct 11, 2022 6:39 pm by කිත්සිරි ද සිල්වා

» Should I Stick Around, or Should I Follow Others' Lead?
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyTue Oct 11, 2022 9:07 am by කිත්සිරි ද සිල්වා

» DV-2024 Program: Online Registration
China has ‘wasted’ $6.8tn in investment, warn Beijing researchers EmptyThu Oct 06, 2022 11:26 am by කිත්සිරි ද සිල්වා

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2 posters

    China has ‘wasted’ $6.8tn in investment, warn Beijing researchers

    Sriranga
    Sriranga
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    China has ‘wasted’ $6.8tn in investment, warn Beijing researchers Empty China has ‘wasted’ $6.8tn in investment, warn Beijing researchers

    Post by Sriranga Fri Nov 28, 2014 9:18 am

    “Ghost cities” lined with empty apartment blocks, abandoned highways and mothballed steel mills sprawl across China’s landscape – the outcome of government stimulus measures and hyperactive construction that have generated $6.8tn in wasted investment since 2009, according to a report by government researchers.

    In 2009 and 2013 alone, “ineffective investment” came to nearly half the total invested in the Chinese economy in those years, according to research by Xu Ce of the National Development and Reform Commission, the state planning agency, and Wang Yuan from the Academy of Macroeconomic Research, a former arm of the NDRC.

    China is this year on track to grow at its slowest annual pace since 1990, and the report highlights growing concern in the Chinese leadership about the potential economic and social consequences if wasteful investment leaves projects abandoned and bad loans overloading the financial system.

    The bulk of wasted investment went directly into industries such as steel and automobile production that received the most support from the government following the 2008 global crisis, according to the report.

    Mr Xu and Ms Wang said ultra-loose monetary policy, little or no oversight over government investment plans and distorted incentive structures for officials were largely to blame for the waste.

    “Investment efficiency has fallen dramatically [in recent years],” they say in the report. “It has become far more obvious in the wake of the global financial crisis and has caused a lot of over-investment and waste.”

    Beijing has in recent years sought to move from its investment-heavy, credit-dependent growth model to one that relies more on consumption and services.

    But slipping growth rates this year have seen it fall back on loose credit and government-mandated infrastructure investment to prop up the economy and ensure steadily rising employment.

    Much of the investment in recent years has been funnelled into real estate projects, but apartment sales and prices have fallen this year, leading to fears of an impending property crash. Most of the industries that feed the real estate sector, such as steel, glass and cement, are awash with overcapacity and have been hit hard by the property downturn.

    Misallocation of capital and poor investment decisions are not the only explanation for the enormous waste in China’s economy. A significant portion of China’s post-crisis stimulus binge was simply stolen by Communist Party officials with direct responsibility for boosting growth through investment, according to separate estimates by Chinese and overseas economists.

    For the past two years, President Xi Jinping has been engaged in a wide-ranging anti-corruption inquiry that has engulfed thousands of officials.

    Jonathan Anderson, founder of Emerging Advisor's Group, the consultancy, estimates that about $1tn has gone missing in China in the past half-decade as a result of weak oversight and the enormous opportunity provided by the investment boom. “That translates into maybe 5 per cent of GDP per year worth of skimming off the top,” he says.

    “Think about it: every local government wakes up one morning in 2009 and finds that the central authorities have lifted every single form of credit restriction in the economy,” he says.

    “With no one watching the till, it would be awfully hard to resist the temptation to sidetrack the funds, squirrelling them away in related official accounts or paying them out through padded contracts to other connected suppliers and friends.”

    Source: http://www.ft.com/intl/cms/s/0/002a1978-7629-11e4-9761-00144feabdc0.html#axzz3KKaFYmmv
    Ethical Trader
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    China has ‘wasted’ $6.8tn in investment, warn Beijing researchers Empty Re: China has ‘wasted’ $6.8tn in investment, warn Beijing researchers

    Post by Ethical Trader Fri Nov 28, 2014 12:41 pm

    Cheene ahema unata sri lankawe ahema wenne naha.

      Current date/time is Wed Jun 19, 2024 11:38 pm