We’ve all heard the arguments for a China bubble in some shape or form, and may hold different views for or against. Regardless, it is constructive when someone brings together all major arguments for one side in one piece.
Here, courtesy of Pivot Capitol Managment, is the full case for a major China slowdown. Why:
- There’s more debt in China than common figures suggest.
- Capital-expenditure driven growth is likely to collapse soon.
- The China urbanization driver is far weaker than proclaimed.
- GDP is full of wasteful spending.
Our favourite chart from the piece:
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