Could China really CRASH the global economy?

Is China's current economic turmoil a threat to the global economy? In this video I take a look at key data and the analyst commentary exploring arguments for and against. I start by providing some background to China's economy before moving to compare how China's 2015 market crash might apply to today's context. I then explore some areas of concern China's economy such as the ongoing real estate debt crisis and the energy crisis. Finally, I consider the upside scenario and some factors that could soften the blow of a potential crash. Thanks for watching, as always feel free to leave a comment below and I'll get back to you!

Hosted by: Kylie Purcell

📜 Contents

0:00 INTRODUCTION

Could China trigger a global economic collapse? What could trigger it and how it could play out?

0:14 THE CHINESE ECONOMY

Key information on the Chinese Economy, what are the chances of a global financial crisis, GFC 2.0? The China slowdown. US CHINA trade war. Evergrande.

1:52 2015 STOCK MARKET CRASH

Similarities between the 2015 crash and the current situation. Cash exodus. The GFC. Lack of liquidity and bad debt. IMF policy actions. Could a stock market crash happen again? How a crash could play out?

4:30 EVERGRANDE

The situation with Evergrande explained. Is Evergrande dangerous? China's growth is reliant on the property sector. Why Evergrande is different from the GFC. Key stats and data. Potential implications of a Chinese downturn.

8:17 THE ENERGY CRISIS

China's energy crisis. Price limits on electricity and potential inflation. Major tech companies rely on China for parts.

9:03 UPSIDE?

Why we may not need to worry? China debt concerns. China high savings rates. How China's control over key industries could shield it from a crash. Downsides of government control.

11:40 CONCLUSION

Could China crash the global economy? Could it create the next GFC?

#evergrande #china #markets

This information is general in nature and is no substitute for professional advice. It does not take into account your personal situation. This information should not be interpreted as an endorsement of securities or any financial product or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Securities trading involves substantial risk of loss and therefore are not appropriate for all investors. Past performance is not an indication of future results. Capital is at risk. Tax on profits may apply. Consider your own circumstances, and obtain your own advice, before making any trades.
FINDER CAR 432664.

[DLAM]

Don't worry about China, you need to worry about the

[jonathanmagic]

Thankyou for your great insights. The problem however is always what we 'don't' know. Corrections are usually preceded by the wise assumptions of economists allaying our fears, because they are ALWAYS wrong!

[junkeatng]

Evergrande is a boil that needs to be lanced. It will be better in the long run. Conversely, corporates in US are buying up real estate in bulk to prevent the price from crashing, with freshly minted currency of course. I wonder which is the more prudent policy?

This is because China is big and economic power. The people work hard to make the supply chain sustainable. Any disruptions are catastrophic to global economic

[chasx]

China is ready to regulate coal prices, so a Chinese slowdown is great for the Environment

[networth]

Every country relies on deficit spending and CB intervention for continued growth. Only so long you can go that route.

[chappo]

Thank you for your very informative videos.

[frasersamuel]

We need a reality check the property bubble in China is the largest in history. When bubbles pop it causes chaos. Just look what happened during the gfc. Numerous countries were in chaos. I can't see how a property & financial meltdown in China won't flow around the world.

Australia in particular will be heavily impacted. Our economy is extremely vulnerable as we also have a property & household debt bubble. Iron ore prices have already collapsed.

Australia's house market is likely to collapse. If history is any guide the collapse will be FAST, BRUTAL & NASTY.

[habeebisiaka]

This is educational but I agree that the world is mistaking slow down for a crash

[batfink]

Well done. One factor you didn't mention that i think will play havoc with any economic recovery is the weather. You may not have noticed, but the last two monsoon seasons have been dramatic to say the least. And if you're a believer in the grand solar minimum theory like I am, then things will only get worse for all of us over the next decade or more as the suns output declines.

[ivanho]

Any country has risks, it is question of degree, before the world worries about China, reckon more critical is US government debt. Will they once again kick it down the road beyond Dec 2021? Or irrational politics and financial actions will send the financial systems into a cardiac arrest?

[israelgregoriojr.]

no world economic collapse, a ponzi scheme is in effect and on the verge of collapse, ccp should and simply do the right thing - HELP those citizens bogged down in real estate trap, either through refunds/complete the bldgs-apts they bought.

[aferrari]

China only need 40 years to catch up and even more advance in many area. Ask yourself, what did your country did in the past 40 years? See if you still laugh!

[language.wanderer]

Good analysis but the background sound is pretty bad, It divides attention.

[zomgoose]

Aren't Chinese savings tied up in real estate, not in the bank?

[gainlabs]

I CAN'T WAIT FOR IT TO FALL!!!
🏗️💥

[pernilsson]

It may not be like the analyst "predict".
One thing that is not there, is the extreme amount of investments, that are, or can be realized, owned by companies and private persons and families.
So if it come to a shortage situation at home, these entities can release theire "foreign" assets, and bring them home.
This would, as you understand, lead to a both liquidity crise as well as a stagflational situation in "the west".

So, the current pumped up economic "warfare" atempt to grab the chinese "richess", can very well bounce back, and get the western economies, as well as the speculation firms, in to a deep and long recetion.

[ronlokk]

Let it fall, housing prices will drop to about half, people will be able to buy again. It will only take about 10 years for the recovery. We have seen it before right here in the good old USA, right?

[jasperangel]

I'm a fan here in the Philippines 🌴😁💗

[mikevan]

The u.s. can take over production. It will hurt for a while in the USA but hurt even more everywhere else.