"Chinese bad loan problems" written by Ke Long

Today, it is Labor Thanksgiving Day in Japan. I'm reading the book, titled "Chinese bad loan problems" written by Mr. Ke Long. This is a Japanese book written by Chinese analyst works for a Japanese institute. Although there are so many news report about China, we have only patchy information because we are not specialist. This book is very significant, due to objective and holistic view about Chinese economy.



China will be the largest or the second largest in near future. But no one think China develops without incident, I think. From what I've gathered, China's economy will be into decline period in 2007, according to China's fortune-telling, 算命学. Although I don't know whether it is right or not, it would be sure China will be recession-ridden in near future. Recent Chinese excited market suggests the end will come soon. It seems many Chinese people don't think it will burst. But it is a typical sign of babble economy. It is a big concern for people in the world.



There is not circular flow of economic system in China but there is only circular flow of politics, he writes. He mentions about China's structural problem. China's government-owned companies continuously lose money, and banks cover them. It becomes "bad and doubtful debts", also Chinese Communist Party's structural issues are, he writes also too.



Well, it is my reading time.



Have a nice weekend.