A Hemingway character famously describes his bankruptcy as happening “gradually and then suddenly.” This week, investors began to worry that China has entered the 'suddenly' stage of its financial decline. | Economy
, a character named Mike Campell is asked how he lost his fortune.“Two ways,” Campell replies. “This week investors began to worry that China had entered the second stage of Campell’s financial stress., once the largest property developer in China and is now thought to rank second, declared bankruptcy under U.S. law on Thursday. It is estimated to have aroundCountry Garden
missed bond interest payments and suspended trading for its bonds. Moody’s Investors Service cut its rating further into junk-bond territory. On Friday, the company’s shares were dropped from Hong Kong’s Hang Seng Index. Shares are down more than 70 percent year-to-date.Growth in consumer spending is moribund. Industrial production is limping. Investment is staggering. Youth unemployment has gotten so bad that the Chinese government announced the official statistics had become a state secret.
Economic growth slid to 0.8 percent in the three months ending in June compared with the previous month, down from 2.2 percent in January-March. To put it in the annualized terms that U.S. readers are familiar with: this is. That’s far below the five percent Chinese officials say they are targeting.from May’s estimate of 6.4 percent to 4.8 percent. Next year is seen as coming in even weaker, at 4.2 percent. Nomura said it sees a bigger downside risk to its forecast of 4.9 percent growth.
The onshore yuan on Wednesday fell to a 16-year low, with a dollar reaching 7.2981 yuan. On Friday, it was slightly stronger, with one dollar fetching 7.2895 onshore yuan.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
How home-schooling left the kitchen table and became a big businessMoney from investors, nonprofits and vouchers has fueled home-schooling's growth. In many cases, parents aren't doing the teaching.
Read more »
How did supermassive black holes get so big so fast just after the Big Bang?'It's like seeing a family walking down the street, and they have two six-foot teenagers, but they also have with them a six-foot-tall toddler.'
Read more »
Breitbart News's Matthew Boyle: Left's Targeting of Trump a Catalyst for Conservative AwakeningBoyle: The Deep State's continued targeting of Trump is opening the eyes of the American people to the depths of the corruption of the elites.
Read more »
Katie Britt not endorsing Trump stirs rift with RNC, Breitbart ‘rabid dogs,’ Steve Bannon, report statesBritt is Alabama's only GOP Congressional delegation member to not endorse Trump.
Read more »
Breitbart News Daily Podcast Ep. 370: Dr. Sebastian Gorka on Trump's Georgia IndictmentDr. Sebastian Gorka discusses President Trump’s ongoing legal drama and what might happen next week during Trump’s Georgia indictment-related press conference.
Read more »
$17 million jackpot-winning lottery ticket sold in DallasA lucky lottery player from the Big D won big on Wednesday night.
Read more »