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 a safe haven in the existing poor climate, food for thought.

Although China's third quarter GDP growth of 7% officially รน most analysts discount that by at least two percentage points, is the highest...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222