Arab Today, arab today chinese economic transition testing global investors wisdom courage
Last Updated : GMT 09:43:55
Arab Today, arab today
Arab Today, arab today

Chinese economic transition testing global investors' wisdom, courage

Arab Today, arab today

Arab Today, arab today Chinese economic transition testing global investors' wisdom, courage

Testing global investors' wisdom, courage
Beijing - XINHUA

As the Chinese economy is undergoing profound restructuring and transition, international investors seem to be split in their judgment about the prospects for China's capital market.

Some people believe that the Chinese capital market is experiencing a major crisis, of which they try to take advantage with speculative actions and even vicious shorting activities.

The latest example is that some radical speculators tried to short sell the Chinese currency yuan, which has been depreciating against the U.S. dollar recently. However, with the Chinese monetary authority taking effective measures to stabilize the value of the yuan, those speculators are expected to suffer huge losses.

Meanwhile, many other investors see new opportunities in the transformation of the Chinese economy.

According to data from the London-based consulting firm Preqin Ltd, in 2015, global venture capital made 1,555 investments in China's startups with a total worth of 37 billion U.S. dollars, up 147 percent over the previous year, showing the investors' confidence in China's pro-innovation policy and business-friendly environment.

In a mature market economy, both speculative shorting and long-term investment are free choices of investors, and therefore should not be labeled as "right or wrong" or "good or bad."

But given the unique nature of the Chinese economy, currently the world's second largest, it should be fair to say that the choices made on China often reflect an investor's wisdom and courage.

As an old Chinese saying goes: To catch a big fish, one must cast a long line. The ancient Chinese wisdom fits the current Chinese economic situation well.

Many leading economists and scholars have pointed out that while China's economic restructuring is a challenging and arduous mission and the transitional period could be lengthy and painful, China is at no risk of a recession and the current 6.9 percent economic growth rate is still good enough to sustain the country's long-term prosperity.

Meanwhile, with the Chinese government actively pushing forward a series of fundamental reforms and supporting innovation-based business startups, both domestic entrepreneurs and foreign investors are expected to benefit from the economic restructuring process.

For example, the government has spared no efforts to cut excessive production capacity, boost domestic consumption and encourage the development of the service sector. It has also granted more market access to private capital and foreign investment.

The latest report from the American Chamber of Commerce in China showed that last year nearly two thirds of its member companies made profit in China, and three quarters saw good investment returns. The report also found that most of the member companies were optimistic about the future growth of the Chinese market, and over 90 percent of them viewed innovation as the key to their future success in China.

A smart, far-sighted investor would seize the opportunity arising from China's economic restructuring, and achieve a win-win outcome by investing in China's future and reaping the fruits of China's reform and robust new economy.

As for those who want to bet on the "ultimate failure" of the Chinese economy, they should look back at the past four decades, which witnessed China's growth from an underdeveloped economy into a global economic powerhouse through continuous reform and opening up.

They should also take into consideration the fact that the Chinese government has been constantly improving the country's market regulatory system and legal system. As a result, reckless speculations and vicious shorting will face higher trading costs and possibly severe legal consequences.

And just as proved in the yuan exchange rate case, the Chinese government has sufficient resources and policy tools to keep the overall economic situation under control and cope with any external challenges.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today chinese economic transition testing global investors wisdom courage Arab Today, arab today chinese economic transition testing global investors wisdom courage

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today chinese economic transition testing global investors wisdom courage Arab Today, arab today chinese economic transition testing global investors wisdom courage

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Second US judge orders freeze

GMT 08:04 2017 Thursday ,19 October

Second US judge orders freeze
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Writing's on the wall for Trump, Zuckerberg

GMT 09:05 2017 Thursday ,19 October

Writing's on the wall for Trump, Zuckerberg
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Climate-disrupting volcanoes helped topple

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Hussein Fahmy happy for honoring in festival

GMT 07:47 2017 Tuesday ,17 October

Hussein Fahmy happy for honoring in festival
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power

GMT 09:31 2017 Monday ,16 October

Dalal Abdel Aziz happy for “Seventh Neighbor”

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 23:42 2017 Monday ,16 October

Better Marriages Make

GMT 06:52 2017 Monday ,16 October

Airbus CEO says won't cling to job

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday