China pleasant surprise of the day

by on July 28, 2010 at 10:16 am in Current Affairs, Economics | Permalink

In most countries, the revelation that local governments would default on a fifth of their bank loans would be greeted with alarm. In China, however, the news came as a pleasant surprise.

“The fact that nearly 80 per cent of those projects have at least some capacity to service their debt is quite amazing,” said Qu Hongbin, chief China economist at HSBC.

There is more here.  This is in large part an aftermath of the Chinese plan for economic stimulus and some comentators have suggested that more of the stimulus should have been run through the national government.

1 anon July 28, 2010 at 12:12 pm

How our expectations have fallen…

2 BKarn July 29, 2010 at 6:49 am

Yes, it’s quite amazing says Qu Hongbin, the unabashedly rah-rah’ing cheerleader of all things China heading up the Chinese unit at a firm that, like its brethren, blatantly panders to the Chinese for favor by being their biggest cheerleaders and propagating analysis that anyone familiar with the 2000s run-up to the fiscal calamity should recognize.

Seriously, while it’s clear that in at the fiscal level China is in a better position than is the United States, articles likes this about almost any other country would raise eyebrows and provoke chuckles from folk who are used to positives being hedged (rather than rarely being so when China is the topic) and to “buts” being negatives (rather than being positives put forward in response to any hedging).

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