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Monday, February 17, 2020

China can stabilize its stock markets but not the real economy. - Part 2

https://www.albanyherald.com/news/business/small-businesses-drive-china-s-economy-the-coronavirus-outbreak-could/article_c2c842b8-47d2-5ce1-8b26-d5ec29a6ba1b.html

85% of SMEs in China can only last for 3 months and many bankruptcies will happen in Q2 2020.

This was the reason why we had stated in our earlier post below that the Q2 would be worse than Q1 because the full economic impacts would be reflected in Q2.

http://sg-stock.blogspot.com/2020/02/beijing-shanghai-and-chongqing-are-in.html

Since these SMEs are not listed publicly, they do not affect the stock markets in China.  Therefore, the stabilization of the stock markets does not reflect the true economic situation in China.

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