May's Statistics Paint a Very Confusing Picture
Economic figures for China's merry month of May do not add up. It reads as the best month since the outbreak of the financial crisis according to investment and industrial growth, while from power generation and enterprises' deposits it seems to be a month of frustration.
SOE Bankruptcies May Accelerate
China is paying high to stimulate demand, especially in terms of creating production capacity surplus. Stimulated demand may not be able to offset demand declining due to the financial crisis, however, while stimulus policies throwing around a lot of money are not sustainable.
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