China lies

It's time to separate fact from fiction, especially when it comes to China. The Western media often paints a rosy picture, but let's take a closer look at what's really going on.

The Hang Seng Index: Is It Really a Success Story?

Imagine investing $10,000 in the Hang Seng Index back in 2008. Fast forward to today, and you'd have made about 100%.

Not bad, right? But compare that to the S&P 500, which would have given you a whopping 700% to 800% return over the same period.

This raises some serious questions about China's economic health, especially with its touted 5% GDP growth rate.

The Deep Seek PR Push: What's Behind the Hype?

China's been making a big splash with its "Deep Seek" initiatives, but let's not get too caught up in the excitement.

The CCP has a cultural tendency to project a strong image, similar to the U.S., but they're still a closed economy.

This makes it tough for them to fully integrate into global capital markets.

Economic Shifts and Targets

Since 2019, China's economic landscape has changed dramatically.

The U.S. is no longer the primary target; instead, China has set its sights on the EU, particularly the car market.

The EU's car industry, once dominated by German brands like Volkswagen, Porsche, and Mercedes, has seen new car registrations halve since 2017.

This shift highlights China's strategic manoeuvring in the global market specifically surrounding EVs.

The Reality on the Ground

But what's happening on the ground in China tells a different story to the GDP stats...

In Shanghai, you'll find numerous storefronts, malls, and restaurants boarded up and empty.

This stark reality contradicts the narrative of a thriving economy. It's time to look beyond the headlines and question the media's portrayal of China's economic success.

What further compounds this is the extent of debt and declining population that will be working — it’s a largely unsustainable model.

Navigating Financial Markets

In today's complex financial landscape, it's more important than ever to discern truth from fiction.

With tools like the Fink Ultimate subscription, you can gain insights into navigating financial markets effectively.

Stay informed and make informed decisions by cutting through the noise.

Markets Talk, We Translate

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