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shanghaiceltic
Board Royalty
Joined: Sep 20, 2005
Posts: 7588
Location: Perth WA
Status: Offline
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Aug 06, 2007 - 12:00 PM |
 
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| Post subject: Chinese bloggers unhappy with investments in the west |
Bloggers in China lambast Western 'wolves'
By David Litterick in New York
Last Updated: 12:49am BST 06/08/2007
The Chinese government's investments in the US and UK have raised a few eyebrows in the west.
But the backlash against the Communist state's overseas spending spree - on private equity group Blackstone, UK energy company BG and Barclays Bank - has been no greater anywhere than in China's own backyard.
Chinese bloggers have been openly questioning the government's stock picking judgment
Aggrieved at the slump in Blackstone's share price since it went public in June, Chinese bloggers have been tracking the fall in the government's investment and have been openly questioning its stock picking judgment.
The value of China's original $3bn (£1.5bn) stake has fallen by around $500m.
The New York Times quoted one blogger on Sina.com comparing the western companies the government was investing in to those who "pillaged" China's wealth and resources in the 19th and 20th centuries.
"Senior officials of the Chinese government, please do not be fooled by sweet-talking wolves dressed in human skin," one posting, since removed, said. "The foreign reserves are the product of the sweat and blood of the people of China, please invest them with more care!
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"These fierce wolves are similar to the foreign thieves who pillaged our forefathers, only they are all the more cunning and manipulative, but their goal of pillaging China does not change with the centuries."
Another said: "It is really alarming the speed with which the Chinese government entered into this investment."
The issue is unlikely to die down as China's central bank uses more and more of its $1,000bn-plus reserves to invest directly in companies overseas, rather than in government bonds.
As China slowly moves towards a market-based economy, it appears to be discovering the universal truth of capitalism - that shares can go down as well as up - and it seems not everyone at home is happy. |
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hc
Post Roaster
Joined: Apr 04, 2007
Posts: 4545
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Aug 06, 2007 - 12:08 PM |
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theAutumn45
Rocker
Joined: Oct 28, 2005
Posts: 796
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Aug 06, 2007 - 12:10 PM |
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Interestingly, there is no crystal ball for stock investment. With the yo-yo of stock market in the West recently, it's better to invest in the bonds.
Then they’d complain not enough return in bonds in a bull market. After all, it's tough to be China's investment managers. |
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hc
Post Roaster
Joined: Apr 04, 2007
Posts: 4545
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Aug 06, 2007 - 01:01 PM |
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*CheerLeader*Mao
Post Roaster
Joined: July 07, 2004
Posts: 4678
Location: frenCh belgiuM
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Aug 06, 2007 - 02:10 PM |
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Regarding these blogs, one can only think China is never going to change. And for the most part the West should never trust them. The fact is with a national mindset like this it is completely mindboggling to try and figure out a time when Chinese will not be racist nationalistic pigs just sitting and waiting for their chance to inflict pain on foreign nations. But they are not sitting and waiting, they are actively working towards doing it, through an increase in military, education and production.
Anyway, it is seen at all levels really, even speaking to some friends studying for the gmat, how Chinese students all seek to memorize a few questions, so eventually the whole test is posted, then enter specialized forums for other Chinese and input the questions for students to learn and test from. These forums are all designed simply to improve Chinese places on the GMAT test and into better positions and university in the USA. They are riddled with slogans like, Helping any Chinese against the foreigners is better than improving your own test score. The Dragons Must Work Together to Defeat the Foreigners etc etc.
Anyway, regarding the investments. And not being a finance guru, but knowing a little bit about economics. I have been ponding a question lately about the over 1 trillion dollars China holds in US dollars. It is from this that they invested the 3 Billion dollars into Blackstone. Now having over 1 Trillion is a lot of money, and essentially this is the Chinese people's money.
So what is stopping the gov't from giving US$1000 to ever man women and child within China to stimulate complete domestic investment, buying, production and savings.
Economically it is perfect, with zero waste and nothing but 100% upside. The only real concern might be inflation.
As an example though, in Alberta, the oil revenues were so high and the budget surplus so large, that the gov't recently paid something like $500 to every resident of the province. It was similar to a policy developed in Alaska and economically it proves extremely good way of investing the money....simply giving it back to the people.
I wonder if the Chinese gov't has thought about this. |
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wolfy
Fire-eater
Joined: Sep 13, 2004
Posts: 2510
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Aug 06, 2007 - 02:30 PM |
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| *CheerLeader*Mao wrote: |
So what is stopping the gov't from giving US$1000 to ever man women and child within China to stimulate complete domestic investment, buying, production and savings.
Economically it is perfect, with zero waste and nothing but 100% upside. The only real concern might be inflation.
As an example though, in Alberta, the oil revenues were so high and the budget surplus so large, that the gov't recently paid something like $500 to every resident of the province. It was similar to a policy developed in Alaska and economically it proves extremely good way of investing the money....simply giving it back to the people.
I wonder if the Chinese gov't has thought about this. |
Just throw cash at the peasants and that will solve everything eh?
I don’t think so. Give a man a fish etc, etc, etc.
I don’t believe in cash handouts especially in third world countries. It’s short term thinking. The money just gets spent or saved, not invested.
Pennies don’t come from heaven. They have to be earned here on Earth! |
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currychook
Rocker
Joined: Dec 21, 2005
Posts: 601
Location: Hong Kou, Shanghai
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Aug 06, 2007 - 02:48 PM |
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The question is- are the Chinese bloggers directing their unhappiness at the govt's stock picking abilities or are they directing their ire at those 'Western wolves'? Or is it that foreign devils are an easier target than their own govt? Is this a rather unsubtle way of criticizing the 'enemy'? In that case, the Chinese nationalist is a very strange beast indeed. |
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shanghaiceltic
Board Royalty
Joined: Sep 20, 2005
Posts: 7588
Location: Perth WA
Status: Offline
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Aug 06, 2007 - 02:48 PM |
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| The issue is unlikely to die down as China's central bank uses more and more of its $1,000bn-plus reserves to invest directly in companies overseas, rather than in government bonds. |
So the govt does not even trust it's own bonds, maybe they know something  |
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I have parrallel bars at home, one for gin and one for whiskey |
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hc
Post Roaster
Joined: Apr 04, 2007
Posts: 4545
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Aug 06, 2007 - 03:13 PM |
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^ Actually quite to the contrary. The reason they are doing this is not to exert appreciation pressure to their currency plus not add gasoline to an already over heated economy on fire...
Exactly like Norway does with its oil revenue.
Quite clever indeed, but people would need some background to understand the more subtle nuances of economics. |
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TheDudeAbides
Rocker
Joined: June 21, 2006
Posts: 719
Status: Offline
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Aug 06, 2007 - 04:21 PM |
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| currychook wrote: |
| The question is- are the Chinese bloggers directing their unhappiness at the govt's stock picking abilities or are they directing their ire at those 'Western wolves'? Or is it that foreign devils are an easier target than their own govt? Is this a rather unsubtle way of criticizing the 'enemy'? In that case, the Chinese nationalist is a very strange beast indeed. |
Very strange, and so full of self-contradiction and delusion. |
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theAutumn45
Rocker
Joined: Oct 28, 2005
Posts: 796
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Aug 07, 2007 - 06:51 AM |
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Interestingly, the surplus they earned is only the fiat money. It could be used to purchase assets overseas, but it’s useless domestically. So there is no use to throw the money to every citizen of China. For that, they need to print extra RMB. That will only add the inflation pressure in China.
Unless we have true globalization of one currency for all… |
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