A Must Read For Chinese Investors; False Prosperity Exposed: China Plunges into Great Depression!

a mustre for Chinese investors analysis of institutional flaws in China's Securities Market China plunges into Great Depression experts unveil truth of false Prosperity China's Central Bank Cuts loan interest rate to Spur property Market Chinese public skeptical China's well-known chain Supermarket RT Mar shuts down multiple stores Lantern Festival sees Spade of fires across China high-rise building in jamui engulfed it's all covered in today's China truths a mustre for Chinese investors analysis of institutional flaws in China's Securities market around the time of the Chinese New Year in an attempt to stabilize the faltering Chinese stock market Beijing injected significant funds to bolster stock prices through its national team intervention simultaneously it compelled exchanges to Halt the selling of hedge funds and vocally announced its intent to severely crack down on malicious Short Selling despite various efforts a shares eventually rebounded with the Shanghai Composite Index climbing back to the 3,000 point mark by the 23rd of the current month on February 23rd season a share investor Lee xman informed Radio free Asia that his losses for 2023 exceeded 2.8 million Yuan approximately 389,000 us throughout this period he continually adjusted his mindset to remain rational calculating the optimal time to exit it wasn't until the market hit a new low on February 5th and rumors of government intervention surfaced that Lee San felt a sense of relief Lee was well aware of the situation stating I'm fully aware once the higher-ups convene and the New Year holiday passes there will be a surge in prices just hold on and nearly all inventory will be sold off you can't predict the restrictions that might follow so there's a possibility they won't allow selling Lee Salman sentiment resonate with many retail investors in China despite the stock market's continuous rebound around the Chinese New Year numerous retail investors remain uncertain about the Rally's sustainability in contrast to the emotional perceptions of ordinary investors experts possess a deeper understanding of the inherent issues within the Chinese stock market Nicholas Spiro a partner at the london-based macro and real estate consultancy loressa advisory frankly stated that the stock market serves as the barometer of the economy and the true issue behind the Chinese stock markets fluctuations is the loss of confidence and Trust from the outside world in the government's ability to manage the economy many Financial experts highlight that the Chinese Securities Market has harbored serious institutional flaws from its Inception which persists to this day according to RFA the Chinese Securities Market was established in 1990 with the initial aim of financing state-owned Enterprises subsequently a large number of private Enterprises were permitted to go public transforming the Chinese stock market into a financing platform kaien Kuan a financial blogger in the United States unequivocally stated the Chinese stock market serves state-owned Enterprises not shareholders statistics indicate that out of the over 5,300 companies listed on the aare market nearly 1,500 are state-owned or centrally owned Enterprises as changqing one of the pioneers of China's Futures Market emphasized that the 2022 China Capital Market Forum state-owned Enterprises do not abide by decisions made by the board of directors but rather by those made by the Party Committee conversely regarding the oversight of listed private Enterprises the two most criticized money-making mechanisms in China are the IPO and quantitative trading these systems allow Enterprises and investment institutions to exploit retail investors funds recklessly leading to the stock market's endless decline quantitative trading has no notably adversely impacted the Chinese stock market but remains unaddressed originally quantitative trading referred to financial institutions utilizing extensive data analysis and pre-programmed model algorithms to automate stock trading thereby enhancing trading efficiency in March 2022 when professor H Chang from the school of finance of Central University of finance and economics criticized the significant issues of quantitative trading in the Chinese stock market he highlighted that since the primary investors in the European and American markets are institutions rather than retail investors quantitative trading is extensively utilized in these markets however the Chinese stock market operates in a completely different manner with retail investors comprising the main demographic many retail investors lack access to quantitative trading rendering it highly unjust for those excluded from utilizing this tool in response Professor E once called on the Securities Regulatory Commission to enhance supervis vision and limit the use of quantitative trading however the Securities Regulatory Commission responded slowly likely due to pressure from institutional entities furthermore China's IPO system for Enterprises presents another institutional flaw in the Chinese stock market following the Securities regulatory commission's transition of the IPO process from an approval-based system to a registration-based system on February 17th 2023 peculiar occurrences arose where companies engag in Short Selling immediately upon their listing an illustrative example is the case of golden Emperor company which engaged in margin trading to sell 4.7 million shares on the day of its public debut in September 2023 it's evident that these companies went public primarily to liquidate their Holdings resulting in a direct impact on stock prices hence he Chang emphasized this is the reason behind the continuous decline in the northern exchange during the financial China 2023 conference on December 2nd 2023 Lou gang the chief expert of the national social science fund major project delivered a keynote speech titled transformation of the Capital Market he candidly described China's capital Market as characterized by unfair wealth distribution and a lack of Justice with a shares remaining stagnant around the 3,000 point mark for an extended period the root cause lies in our systemic issues necessitating fresh reforms in Security's regulatory framework however shortly after publicly criticizing the Chinese stock market Lu gang faced a complete ban from Mainland China's Network and was compelled to resign from his position as dean of the Capital Finance Research Institute at China university of political science and law China plunges into Great Depression experts unveil truth of false Prosperity the ccp's ministry of culture and tourism's data center recently released figures indicating 474 million domestic tourist trips during the New Year holiday with domestic tourists spending 6.32 687 trillion Yuan approximately $878 billion US key national retail and Catering Enterprises reported an 8.5% year-on-year sales increase based on comparable metrics CCP State media highlighted New Year consumption data including tourism dining Goods transportation and movies as evidence of a strong start for the Chinese economy despite the ccp's relaxation of pandemic restrictions in 2023 China's Industries saw a downturn with declining exports sluggish domestic demand growth notable drops in manufacturing production and sales a precarious real estate sector and other indicators of economic decline renowned Mainland Financial influencer big luua recently posted a video acknowledging the holiday consumption rebound but emphasized the Pres of false Prosperity beneath the billions spent lies a contraction in trillions of spending a phenomenon known as lipstick economics this trend refers to the surge in lipstick sales during economic downturns also called the preference for lowcost products Trend he asserted that regardless of financial status if individuals spend within their means to enhance their lives all Chinese citizens can contribute to stimulating the consumption Market thus any domestic consumption facilitates wealth circulation within the country once money circulates some will inevitably reach those in need however if money stops circulating it spells trouble big luua emphasized the crucial importance of consumer recovery within China's current context noting the irreversible trend of decoupling traditional economic ties between the west and China he urged Chinese citizens not to Harbor Illusions about this reality from this perspective stimulating domestic consumption takes on significant importance this month Voice of America published an article by a Shanghai political scholar under the pen name xang Fong titled the Great Depression is here a historic moment of Shanghai isation that the article describes the unsettling atmosphere preceding the 2024 Chinese New Year akin to the onset of an unprecedented Great Depression Chinese people are helplessly witnessing this dire economic situation with more businesses and factories closing early or taking holiday breaks before the new year than ever before this widespread economic downturn and bosses fleeing have become almost commonplace the article suggests that an inward focused economy dominated by power rather than the market is gaining prominence in China over the past decade China has experienced fundamental and comprehensive destruction leading to a direct undermining of the Chinese economy and even Chinese politics this this trend serves as the root cause of China's pessimistic political landscape and inevitably leads to a Great Depression Financial experts trust crisis spersed three major capital surpluses in a recent statement Financial influencer magical Bruce highlighted that the foremost challenge confronting the Chinese population currently is the trio of capital surpluses stemming from a lack of trust he explained the first Surplus is an industrial Capital China's manufacturing sector is facing widespread Surplus with many Industries operating well below full capacity some as low as 20% this Surplus is aggravated by insufficient demand and a lack of purchasing power among consumers leading to excess inventory apart from a few sectors yet to undergo deregulation Surplus capacity pervades diminished orders and profits prompt the exit of foreign investment and a rise in unemployment further fueling the Surplus the second Surplus is in financial Capital many banks find themselves with more deposits than loans as businesses refrain from investing and consumers curb spending consequently this Capital remains trapped within the financial system failing to stimulate the real economy Banks struggle to lend out funds while still obligated to pay interest resulting in an overabundance of financial Capital the third Surplus is in commercial Capital shopping malls Pharmacy hotels and milk tea shops are now ubiquitous in 2012 there were 420,000 pharmacies a number that ballooned to 620,000 by the end of 2022 it's common to find four or five pharmacies lining every street sacked on first day back to work as previously reported across various social media platforms numerous users aired grievances about the widespread economic downturn they observed sighting closure ures of businesses bankruptcies plummeting property values unemployment and significant losses in the stock market one of these users is yujo erlong from Hunan Province he recently posted a video revealing that on the first day back to work after the Chinese New Year holiday he was unexpectedly laid off he didn't want to disclose this to his family despite spending two days job hunting and applying to three places he declined all offers due to low pay and Li Li mited growth prospects now homeless and uncertain about his future job he's been sleeping in his car for three consecutive days waking up Frozen each morning he also bemon the fierce competition in job hunting with 45 applicants vying for a single position finding employment in 2024 proved exceedingly challenging with few job openings and an abundance of job Seekers even graduates from esteemed universities competed for positions alongside middle-aged individuals like himself intensifying the job search in a recent video chtn certified as the general manager of Beijing Oriental Jinga Technology Company Limited recounted witnessing an elderly lady rumaging through a trash kin for an extended period when asked she explained that she sought empty bottles to sell her son was getting married and had a mortgage to pay off so she collected bottles to ease the financial burden CH noted the Grim reality that impoverished individuals were already depleted of energy simply trying to survive China's Central Bank Cuts loan interest rate to Spur property Market Chinese public skeptical in a bid to stimulate the sluggish economy the CCP Central Bank recently made a significant move by lowering the long-term loan prime rate LPR to a historic low aiming to revitalize the property Market in detail on February 20th it announced a 25 base is point reduction in the LPR for loans with a maturity exceeding 5 years bringing it down to 3.95% however the Chinese public who have just experienced a stock market crash are skeptical about the cut and remain reluctant to invest in the real estate sector SI Fang president of the China Urban Real Estate research institute said that this is an unprecedented rescue move and indicates that the property Market may be about to usher in a new Turning Point Jean dawe chief analyst of jeongu property in China said that this interest rate cut will have a significant impact on the real estate market especially in first and second tier cities he predicted that mortgage interest rates will remain at historic lows over the next 3 years however the Chinese public believe that these so-called experts are royal experts who collaborate with and speak out for special interest groups within the CCP they expressed distrust stating if people continue you not to buy houses the government will further cut loan interest rates meanwhile other voices like entrepreneur Chia D ways caution against excessive Mortgage Debt warning of a potential real estate Bubble Burst nison kangu posted a video on social media on February 21st saying that the cut in mortgage interest rates now is a negative for most people he pointed out that as loan interest rates decrease corresponding bank deposit interest rates also decrease according to him the government continues to print money while lowering deposit interest rates and the wealth of Ordinary People shrinks faster moreover we are not in a period of economic growth and it is impossible for most people to make up for the shrinkage of their wealth by working I'm quite panicked Wang Guan assistant researcher at the chunga institution for economic research in Taiwan said on February 22nd that this loan interest rate cut is related to China's stock market CR crash the CCP hopes that through the cut and mortgage interest rates real estate consumption or home purchases will increase however the data is that many real estate sales in January were basically in Decline it's a continuation of a recession the pessimism of real estate also suppresses the ability of the entire Chinese stock market to rebound significantly so they use this method to stimulate real estate and also hope to stimulate the entire stock market as for the effect Mr Wong said that he thinks the effect will be minimal everyone is afraid to buy a property whether it's evergrand or Country Garden quite a few new top 50 property developers last year fell into debt defaults including state-owned real estate Enterprises the reduction of LPR will not be able to reverse the entire real estate debt naturally the debt cannot be resolved so he thinks the subsequent real estate market will be worrisome China's well-known chain Supermarket RT Mar shuts down multiple stores China's sluggish economy and low consumer confidence have prompted RTM a prominent chain Supermarket to close its stores in deang Sichuan janang Janu and jujo Hunan Province these stores operating for 9 to 10 years have shut down without given reasons since January 2023 at least 13 RTM stores have closed or announced closure mainly due to lease expirations and operational adjustments notably the panua store in Sichuan opened in late 2018 closed after just four years rtmt a subsidiary of gaing retail Company Limited operates hypermarkets supermarkets and convenience stores in the midterm report for fiscal year 2023 gaen retail reported a revenue of 35.760000 marking an 11.9% year-on-year decrease the net loss attributable to the parent company was 378 million Yuan about 52.5 billion US a significant 334.50 increase compared to the previous year gausen retail attributed the loss to factors such as a contraction in the supply chain business lower than expected performance and increased discount promotions leading to a decline in sales profit Lantern Festival sees Spade of fires across China high-rise building in jamui engulfed during the 20124 Lantern Festival fires broke out in at least three Mainland Chinese cities notably videos surfaced on February 24th showing a high-rise Residential Building Ablaze in jamui City halong Jiang Province Flames quickly spread from the first floor to the 17th Floor rooftop of the same unit forming a towering fire dragon reports indicate that the fire originated in a unit of the high-rise Residential Building in San Gian commercial City local authorities claimed the fire was extinguished with no casualties though this has been questioned on the same night videos circulated online showing a major fire at a toy store in shenzhen's Long haa Market guangong Province official reports on casualties and financial losses are still pending earlier that day videos emerged allegedly showing a residential building on fire in shuaa District mingbo city jujang province this incident also awaits official 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