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-- in China are rebounding -- credit conditions actually improving after the nation's Central Bank governor promised to make sure there will be enough money in the economy for financial market stability so.
To explain all of that.
Leland Miller president of the China Beige Book and the reason we asked you to be here is because we had the Central Bank -- saying.
No more easy money and that really upset a lot of people we we we saw you know reaction in the United States that because there was concern that they might have had there.
Lehman moment -- Crunch in China not the case well -- shot markets -- -- shouldn't you know are trying to -- -- data all year has been -- tightening.
The reason people are picking this up as most people -- looking at the headline official data.
And there's nothing in that indicates that.
Conditions on the ground -- bad bad example the banks are saying their landing -- -- developers that people who need money you're saying it's getting tight tight tight.
That is a huge divergence and answers when we talked to bankers -- the one hand.
And firms on the other side the bankers are saying get stable interest rates were loaning out more money but firms are saying interest rates are going up.
And we're borrowing a lot less so there's there's a problem there and signaling distress says okay so if there is distress should we be selling here should we be concerned in the United States about that distress in -- -- in the short term you're gonna see a slowdown in growth there's no question about that.
But for China in the medium and long term they have to do this is actually very positive they need to -- bouncer -- and they need to push slower healthier growth is there any conservative way to make an investment based on this tightening in China not only of credit but also a slowdown -- economy despite -- just -- at tick up in manufacturing their way someone could safely.
Turn off of this sure I mean it's economy that still growing at a nice pace.
-- what you have to understand is that the old.
Norms no longer applies to manufacturing is no longer the Bellwether the economy.
Services and retail these the two sectors are trying to push hard they want higher margin activities and there will be opportunities in China they're just not the same as they used to they should not be looking at American companies for those opportunities that -- -- just off the -- might young for instance I mean huge in China should I be looking at those possible investments are actually going directly because I've always -- be very careful about investing directly and the Chinese companies.
Well -- -- a -- another type of problem when -- investor couldn't Chinese companies because you don't usually know it's in their books.
But you know you -- he owns an estate company because you have -- things involving food in China there's another angle of potential problems because of the food chain and and the mismanagement of food over there so there's no there's no single answer that question about.
It's a way that's a wrap this up what should I as an American expect over -- the next six months to a year continued slowdown continued credit crunch or will things get better.
No this is this the start of what's about to happen and I think what people or are trying to understand is that the old stand -- data method to watch a Chinese economy are inadequate you need you we need more.
Human Miller from the time Beige -- thank you very much for joining -- thank you a -- We.
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