China's GDP growth: money down the drain

Impressive GDP growth is not trickling down to Chinese companies, which suffer low returns due to over-investment and heavy charges, says UBS Warburg. The Big Four state banks, which finance the companies through bank loans, are paying the price.

Some cynics say investment banks used the opportunity of the World Trade Centre Attack to rewrite their global and US economic forecasts, which were beginning to look absurdly optimistic even before the attack.

Well, it seems UBS is the first investment bank to allow its analysts to fire their salvoes against China. The investment bank has provided an excellent antidote to China hype in its latest China Strategy Quarterly. This should give investors, who have been looking at China as...

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