In our podcast, Tian Hou, China Analyst for Auriga, takes us on a tour of China's domestic economy, its changing landscape, and the challenges of allocating resources.
Click the audio player below to listen to the full episode.
Subscribe to our podcast in iTunes to get each of the episodes in this series delivered directly to your computer. Visit our Insight page in future weeks to hear more about China from an overall economic perspective and to hear about the performance of all Asia in context.
Some highlights from our episode:
- China is attempting to rely on domestic consumption over exports, but has room to grow in this area. Prices in the property market are so inflated that many Chinese citizens have no disposable income for discretionary spending.
- The government has begun to manage the property shortage by allocating more land for low-cost housing.
- While China's inflation rate has historically been under 3.3%, this doesn't account for housing, oil, or gas (as it does in the U.S.). The price of almost every commodity has gone up significantly in urban areas. The inflation rate affecting urban workers may be much higher than the government’s official numbers.
- China will continue to provide subsidies for farmers to alleviate the shortage of agricultural goods, and will work towards supporting more efficient energy, but the road ahead is long.
Tian Hou will be speaking in the Markets and Industry Analysis track at FactSet's upcoming Investment Process Symposium (March 20-22, 2011). To learn more or register, visit www.factset.com/symposium.
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