Predicting that China's economy is heading towards a stock market crash, reaching that unfortunate destination in 2016, is certainly risky. It may even be presumptuous and premature to suggest the notion of China's economy falling to pieces.Excluding gold, China has an estimated $3.8 trillion in foreign currency reserves as of December 2014. China's gold reserves were 1,658 metric tons, which is about a fifth what the U.S. holds. However, gold has seen a sharp price drop over the past two or three years from its peak of $1,921/oz. to $1,135 per ounce, corresponding to a value of $61.0 billion.
Is these the beginning for china stock market crash???? What's your take on these guys????
It will recover. 1.5 billion people working, it will not crash totally.
it's more like 1.1 billion - pension age is in the 50s and population is top heavy
Haali, ok. Either way, I think that there will not be a major crash, as labor in China is enormous.
I wouldn't assume that just because somebody is over 50 that they are not working or just sit on their ass. I see an awful lot of 50+ year olds still tolling away in the fields.
Many of the urban dwellers have the full time job of taking care of their grandkids. Although it doesn't directly generate income, it spares the family the burden of having to pay for day care or nannies.
@day trader
"Labor in China is enormous".
That has not much to do with how bad an economy can crash. Labor in the States and other Western countries was enormous too. And still the crash wasn't cushioned by it.
Also a lot of Chinese labor market is inflated. Three people doing the job of one,especially in the public sector.
Chinese economy, not an if question but a when question,-will crash.
Western economies have little securities and logic. But China has virtually non, besides the rich and public servants shipping their cash piles overseas.
Capitalist economies crash periodically - business cycles. Depends on what is meant by 'crash', I suppose.
The market crashed in December and has been languishing since. Now is as good time to buy, in whatever way you can, e.g. A Shares via trusted proxy, H shares in Hong Kong, China mutual funds, or Chinese firms listed in the US — if you want to go long on the economy here.
And the stock market here are not inextricably linked to the wider economy. It's tiny by comparison and thus not a good indicator.
Crash seems to be a difficult term, and could describe a complete collapse, like in 1929. Which is why perhaps they are using terms like 'hard landing'.
Anything to soften the blow to the brains of the populace.