digest: CUI BONO? PART OF U.S. GEOPOLITICAL FAILED STRATEGIC WAR AGAINST MAJOR CAPITALIST RIVAL IT PRETENDS IS STILL COMMUNIST-LED, NOT JUST SOME ‘MARKET MYTHS’: OFFICIALLY LAID OUT HERE
"Prevent the Reemergence of a New Rival"
Originally published New York Times March 8, 1992.
Digest excerpts from: Stock meltdown exposes how markets cling to myths about China
...One of these myths is that China’s stock market is a weathervane for the larger economy. It most clearly is not.
Patrick Chovanec, chief strategist at Silvercrest Asset Management, is one analyst who has long warned that China’s stock market is an exercise in rampant speculation, and an irrelevant indicator of how the nation is faring. “There plenty of reasons to worry about retraction in the Chinese economy but China’s stock market is not one of those,” said Chovanec, an adjunct professor of international affairs at Columbia University. The country’s bigger problems, he said Wednesday, involve managing debt and transitioning toward an economy that grows domestic consumption, instead of cheap imports.
China claims its GDP is still expected to grow 7 percent this year — an impressive number, even if hard to verify. Whatever the real growth rate, the country’s manufacturing output appears to be falling faster than expected. That’s causing major anxiety worldwide, especially for countries that export raw materials and semi-finished goods to China’s factories....