Market Review and Trends
5 Issues with China’s Growth
By Investment Stab  •  April 6, 2016
As China enters its new phase of slower growth, it needs to cope with several things
  1. Drop in investments into China
  2. Declining producer prices
  3. Rising wages
  4. Rising corporate debts
  5. Shifting from export-led economy to consumption-led economy
1) China’s declining growth rate would result in less investments (local or foreign) pumping into its economy. Currently, investment rates in China is close to 45% of its GDP. However, as its growth rate starts to decline, such levels of capital investments would no longer make economic sense. 2) Overcapacity and overproduction has led to widespread decline in producer prices. Companies are struggling with lower revenue and slower turnover. Global demand for China’s goods are declining as a result of low global economic growth. 3) The average worker’s wage has doubled since 2004 and is expected to continue rising. This increase in expense has resulted in several factories in China to close down and ......
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By Investment Stab
We are a group of Singaporean students who are curious and interested in Finance. As we dive deeper into this area in search of more knowledge, the more debates and differences we have. We also realised that financial literacy is not strongly inculcated in the younger generations, leading to numerous costly mistakes. Some of such includes believing in "high profiting" scams such as land banking and buying unnecessary investment schemes which are often motivated by the salesperson's personal interest ...
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