

The Source of Chinese Savings - cwan
http://blogs.wsj.com/chinarealtime/2009/11/24/the-source-of-chinese-savings/

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felipe
I find it amusing that the IMF and economists for decades pushed emerging
countries to "pay the interest on their debt, or else..." in order to keep
rich countries growing, but now that the tables are turned they want the
emerging countries to "stop growing"... ????

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est
Forget it, As a Chinese I can tell you the real source: It's a practice in
China to save company money in a private account.

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cwan
Also being in China a great deal, I would anecdotally say that the posting
seems fairly accurate though I would add that a lot of funds saved by those in
the city or at factories are sent home and spent there. There has also been a
massive amount of consumption in the form of fixed assets that a lot Chinese
would call "investments" like real estate where pricing seems unsustainable.
It really isn't the households that have the money to spend (particularly
given that they also experience shocks like healthcare expenses from time to
time), but the SOE's and large industrial firms (at least in my experience).

