My take on China's recent decision to launch the monetary and fiscal "bazooka" to fire up the economy and why it took Beijing so long to pull the trigger on a bold stimulus package.
Thank you for your as always deep insight and pertinent article that explains facts and aspects of the current situation in the Mainland ( actually a tendency ongoing since already long time)! This make so clear what Chinese media can’t express but we feel here in Hong Kong and also mainland entrepreneurs are clearly signalizing, many of them looking more and more for opportunities outside of China.
When Beijing didn't take any action, you just assumed they didn't know what to do. When they acted, you assumed they "suddenly" changed their mind. To someone who doesn't know and riddled with doubts, it all seems "sudden" to you. I disagree with that description. When I act according to a plan or according to known principles, others also feel my actions "sudden". The reality was I waited for what I believed was the right time to act. Sometimes I'm right and sometimes wrong. That's how it is. But your assuming they "didn't know" or acted "suddenly", it is just your assumption from someone who have sufficient experience operating with a long term plan.
Let's say today is the first day of a bear market in XYZ country, which you correctly predicted months ago. Do you immediately Buy when the stock market in this country begins dropping? Of course not! Having a plan doesn't mean not waiting for the opportune moment to act, or at least try to. You need to have long term thinking and not make those baseless assumptions.
It seems like this policy shift is having the desired results. Although purely anecdotal, one of my students from Nanjing told me that she intends me to start investing again in the Chinese stock market after a long pause.
Thank you for your as always deep insight and pertinent article that explains facts and aspects of the current situation in the Mainland ( actually a tendency ongoing since already long time)! This make so clear what Chinese media can’t express but we feel here in Hong Kong and also mainland entrepreneurs are clearly signalizing, many of them looking more and more for opportunities outside of China.
Thanks Corrado
When Beijing didn't take any action, you just assumed they didn't know what to do. When they acted, you assumed they "suddenly" changed their mind. To someone who doesn't know and riddled with doubts, it all seems "sudden" to you. I disagree with that description. When I act according to a plan or according to known principles, others also feel my actions "sudden". The reality was I waited for what I believed was the right time to act. Sometimes I'm right and sometimes wrong. That's how it is. But your assuming they "didn't know" or acted "suddenly", it is just your assumption from someone who have sufficient experience operating with a long term plan.
Let's say today is the first day of a bear market in XYZ country, which you correctly predicted months ago. Do you immediately Buy when the stock market in this country begins dropping? Of course not! Having a plan doesn't mean not waiting for the opportune moment to act, or at least try to. You need to have long term thinking and not make those baseless assumptions.
It seems like this policy shift is having the desired results. Although purely anecdotal, one of my students from Nanjing told me that she intends me to start investing again in the Chinese stock market after a long pause.