{"id":313298,"date":"2010-02-12T11:43:00","date_gmt":"2010-02-12T16:43:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/hugh-hendry-on-china"},"modified":"2010-02-12T11:43:00","modified_gmt":"2010-02-12T16:43:00","slug":"hugh-hendry-here-are-four-reasons-china-will-start-sucking-wind","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/313298","title":{"rendered":"Hugh Hendry: Here Are Four Reasons China Will Start Sucking Wind"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"float_right\" src=\"http:\/\/static.businessinsider.com\/image\/4b7306e10000000000d34f3c-365-250\/hugh-hendry-on-newsnight.jpg\" border=\"0\" alt=\"hugh-hendry-on-newsnight\" width=\"365\" height=\"250\" \/><\/p>\n<p>People are way too psyched about China, says Hugh Hendry.<\/p>\n<p>In a piece he wrote for the <a href=\"http:\/\/www.telegraph.co.uk\/finance\/personalfinance\/7219178\/China-Hugh-Hendry-warns-investors-infatution-is-misguided.html\">Telegraph<\/a>, the hedge fund manager admits that China has been growing like crazy.<\/p>\n<ul>\n<li>China&#8217;s conomic growth has averaged 9% a year over the past 10 years, compared with 1.9% for the British economy. <\/li>\n<li>Last year, despite the credit crunch, China posted a remarkable growth rate of 10.7% compared with a British contraction of 3.2%<\/li>\n<\/ul>\n<p>But here&#8217;s why China is not that great, according to Hendry:<\/p>\n<ul>\n<li>China, now the world&#8217;s biggest creditor, is also running persistent trade surpluses. That&#8217;s only happened twice before: with the US economy in the 1920s and with the Japanese economy in the 1980s.<\/li>\n<li>Unlike in most countries, China&#8217;s share of consumption within its economy has fallen relentlessly, reaching 35% of&nbsp;GDP in 2008.<\/li>\n<li>Foreign demand for its exports dropped. Now China relies on a massive surge in domestic bank lending to fuel its growth rate.<\/li>\n<li>China&#8217;s state planners have favored investment over consumption. China&#8217;s investment spending has tripled since 2001. Domestic consumption never grows fast enough to absorb the supply, and Chinese profitability is already low.<\/li>\n<\/ul>\n<p>Read <a href=\"http:\/\/www.telegraph.co.uk\/finance\/personalfinance\/7219178\/China-Hugh-Hendry-warns-investors-infatution-is-misguided.html\">Hugh Hendry&#8217;s full article in the Telegraph &gt;<\/a><\/p>\n<p><a href=\"http:\/\/www.businessinsider.com\/hugh-hendry-on-china#comments\">Join the conversation about this story &#187;<\/a><\/p>\n<p><b>See Also:<\/b><\/p>\n<ul>\n<li><a href=\"http:\/\/www.businessinsider.com\/watch-hedge-funder-hugh-hendry-say-he-wants-the-euro-and-greece-to-tumble-fight-with-joe-stiglitz-2010-2\">Watch Hedge Funder Hugh Hendry Fight WIth Joe Stiglitz And Say He Wants Greece To Collapse<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/china-just-raised-its-reserve-requirements-once-again-2010-2\">China Just Raised Its Reserve Requirements Once Again<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/leak-chinese-government-orders-reserve-managers-to-pull-out-of-risky-assets-2010-2\">China&#8217;s Retreat From Risky Bonds Could Be The Straw That Breaks California&#8217;s Back<\/a><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/TheMoneyGame\/~4\/DNguFqfjMz4\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>People are way too psyched about China, says Hugh Hendry. In a piece he wrote for the Telegraph, the hedge fund manager admits that China has been growing like crazy. China&#8217;s conomic growth has averaged 9% a year over the past 10 years, compared with 1.9% for the British economy. Last year, despite the credit [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-313298","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/313298","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=313298"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/313298\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=313298"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=313298"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=313298"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}