As China’s economic slowdown continues, companies such as Lenovo (0992.HK), Tencent (TCEHY), and XPeng (XPEV), are feeling the impact. Paul Christopher, Head of Global Investment Strategy at the Wells Fargo Investment Institute, joins Yahoo Finance Live to discuss why China’s economic story is 'a difficult one,' but 'a familiar story.' Christopher says that, in China, popular restaurants and tourist locations are experiencing a lot of foot traffic, but 'what’s suffering there is private business. Private business is just not really sure where things are going next. They’re struggling to contain costs, to make money. They’re struggling to survive rather than to expand.' There is 'this little bit of deflation coming from China to the U.S., worries about debt there, and that weighs on investors here,' Christopher says. China 'has focused its rapid growth on a lot of… government-directed bank lending so the government tells the banks who gets the money, who gets the capital.' A lot of China’s 'stock market is run by insiders, corporate executives' and it’s 'a very volatile market,' Christopher notes. Christopher explains that it’s 'difficult' for private firms to get capital if they’re not 'already on the government’s list.'
One-time purchase. PC/Mac/iPhone/iPad/Android/Tablets. 5TB OneDrive No subscription. Word, Excel, PowerPoint, OneNote, and Outlook.STORY: Chinese developer Evergrande has filed for bankruptcy protection in a U.S. court.The property giant made the move in one of the world's biggest debt restructuring exercises. The firm's problems add to growing investor worries about China's property debt crisis and its overall economy.
It will meet with its creditors later this month to discuss its restructuring proposal.A number of Chinese property developers have defaulted on their offshore debt obligations.Leaving in its wake unfinished homes, plunging sales and battered investor confidence.The property sector makes up about a quarter of the economy.The crisis has led to a contagion risk, which could further hurt a Chinese economy already weakened by slower growth.
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