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Fox Business Network.
Time to talk about China -- economy grew by seven point 4% in the third quarter from last year this was the weakest reading since the beginning of 2009.
But -- slower growth really what the Chinese economy needs -- joining me now.
Leland Melanie is president of the China Beige Book and that -- thank you for being here.
We always look at numbers out of China -- of skepticism because we really can't believe what the Chinese Government is telling us.
You put out your China -- Several days ahead of when those GDP numbers released out of China why should I believe -- numbers -- what the Chinese got.
-- tells us.
What -- usual only independent data become one of the one of the biggest misconceptions of the Chinese economy is that the GDP number.
Actually tells whether the Chinese Government is doing a good job or a bad job -- And in an.
Over over -- their stewardship of the economy.
The reality is that the GDP number he's he's just a number about productivity it doesn't tell how -- Chinese economy.
Is there is not growing winners borrowing.
GDP growth in the future or whether it's they're doing a healthy rebalancing.
I always seem to hear from people and is not every six months is almost some once a month that this is an economy that's ready to collapsed -- -- a lot of that -- we hear that all the time as a matter of fact.
We put our second quarter report -- -- set up.
-- we were seeing modest strengthening.
In the economy coming out of what was quite a deep -- from last year not people were saying we are insane.
Probably I think you see here is that this is be the official data to -- very pretty story.
If these beautiful growth curves nothing ever goes down too much never nothing ever goes up too much.
But the world doesn't work like that and so we try to get to the bottom of this -- and cover the real story what have you found that we we certainly understand the Chinese economy is slowing.
Even that the government has to admit that but to what percentage of where's it headed.
But we don't come out with a headline number we don't say they had GDP you -- -- 4% -- point 4% but is it healthy.
We're seeing weakening like anyone -- like everyone else is but the difference is that.
Not all weakening is the same thing how we're seeing some -- precipitous decline in manufacturing growth.
And -- really being hit hard now we're seeing weakening in in the services sector were seen weakening in the retail sector but is proving far more resilient so.
You know this is very different than seeing an overall calamitous decline.
It is a very export driven economy yield that efforts underway to increase domestic -- -- does that being successful little.
While we don't think so one of the things that we do is we look at not just that the bank.
Rates which are set by.
Is that some of the central government we also look at the shadow economy and what we do with the breakdown by region and by sub sector than non bank lending rate so where we have that information on.
What firms are accessing capital what's the cost of real cost -- right and for three quarters now.
We've seen a decline in the national interest rate.
-- -- the same time a decline in loan demand and the third quarter.
I was by far the most significant drop in both the interest rate very telling and the loan demand -- very good Lehman -- present -- the China based but thank you so much for being here thank you appreciate it.
So they don't it's official -- and everything.
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