Xie Jinhe pointed out that Taiwan's economy has been booming in recent years, and China has actually been a big help because the other side of the Taiwan Strait has driven funds back to Taiwan. (File photo)
[Instant News/Comprehensive Report] Xie Jinhe, chairman of Caixin Media Group, pointed out that Taiwan’s economy has been booming in recent years, and China has actually been a big help because the other side of the Taiwan Strait has driven funds back to Taiwan. He said that due to the bursting of the real estate bubble and improper policies, China's domestic demand continues to be sluggish and capital continues to flee. China's continued expansion of bullying against Taiwan has also caused Taiwanese businessmen to leave China. Xie Jinhe bluntly said, "China is on the wrong track!"
Xie Jinhe posted a post on Facebook with the title "China is on the wrong track!" and pointed out that his old friend Xiao Wu sent a text message and asked him if he could buy Sun Art Retail, which had dropped to HK$1. He responded that it would be harder to sail against the current! An old friend thinks that Mr. Yin Yanliang sold it to Jack Ma for HK$6.5 per share. The stock price later rose to HK$13.4 and recently fell to HK$0.89, so he should be able to buy it at the bottom!
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Xie Jinhe said that in terms of cheapness, Sun Art Retail’s major shareholders are in the high-end market, and China RT-Mart still has value. However, the overall domestic demand in China is very poor. Today, China Want Want's stock price further fell below HK$3, with the lowest remaining at HK$2.98. China's sluggish domestic demand is closely related to the continued fall in real estate and the bursting of the real estate bubble.
Xie Jinhe pointed out that Xu Jiayin was recently sentenced to life imprisonment, but no one dared to clean up the 2 trillion yuan in liabilities that Xu Jiayin removed from the bank. The lower the bank's stock price-to-book value ratio, the lower it gets. Recently, efforts have been made to appreciate the renminbi. The central government hopes that the appreciation of the renminbi will stimulate domestic demand. However, the central government's policies run counter to encouraging domestic demand.
Xie Jinhe analyzed that central government supervision has become increasingly strict, and entry inspections for foreigners have tightened. Anta’s CEO recently moved to a foreign country, and Ctrip executives tried to do the same but failed. In theory, under the pressure of falling real estate and shrinking people's assets, the government should increase its efforts to attract investment. However, China's long-arm jurisdiction continues to expand its bullying of Taiwan. Taiwanese businessmen have left China, which has further weakened domestic demand.
Xie Jinhe explained that in 2012, 96.4% of Taiwan's foreign direct investment (FDI) was invested in China. Last year, the figure was only 3.8%, and in the first quarter of this year, it was only 0.74%. The competition between the United States and China has even discouraged international investors from investing in China.
Xie Jinhe mentioned that Japan’s bubble burst in 1989, the yen continued to appreciate, and Japan’s public bond yields even became negative. On November 26 last year, Japan’s 10-year and China’s 10-year bonds crossed at 1.84%. Now Japan is 3.012%, and China is left with 1.69%. The widening spread between China's 10-year bond and 30-year bond yields and interest rates between the United States and Japan has further accelerated China's capital flight.
Xie Jinhe bluntly said that China has been selling U.S. debt over the years. In 2017, China held U.S. debt of 1.3167 trillion U.S. dollars, and now it has 633.4 billion U.S. dollars left, which is less than half the level. And the attractiveness of Chinese government bonds has been declining. New funds can’t come in, and the money inside wants to escape! When cross-strait relations were good, all the flow of people and money from Taiwan went to China. Now everyone is scrambling to get out!
Xie Jinhe emphasized that Taiwan's economy has been booming in recent years, and China has actually been a big help because the other side of the Taiwan Strait has driven funds back to Taiwan! Starting from 2017, the previous 10 years were the initial stage of bubble adjustment, and the next 10 years will be even more difficult.
Xie Jinhe pointed out that in order to compete with the United States, China has focused its national strength on AI, humanoid robots and semiconductor industries. Recently, Yushu’s stock price has halved within a few days of its listing. The global sensation Shein IPOed at 48.65 Hong Kong dollars per share, and its stock price plummeted 8.7%. It seems that the further it goes down, the greater the pressure will be!
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