RE: Codelco reduced copper output29 Aug 2023 22:17
DMc: there are no magic wands that can fix the serious problems facing China. Rather than them aiming at the top-seat it looks seriously hard for them to not fall off their current high chair. Property developers are in deep trouble (Evergrande, Country Garden), even the state backed ones, shadow banking crisis with large shadow bank with un-pronounceable name failing to make payments on financial products, sky high youth unemployment (including graduates), population no longer cowed by authorities (as per dropped lockdown edicts). Add to that lower demand for Chinese products, partly due to onshoring, and cost of production rising above India, Vietnam etc. paints a grim picture. Having said that, they are trying hard with state banks cutting mortgage rates and deposit rate cuts to boost growth. If they can navigate a way out of their current mess that will be an achievement indeed. IMO top-seat is aiming too high ...