Here's what a high ranking official in China's government said about some of "unreasonable urbanization measures" being implemented via the transcript (video below).
It’s a build, build mentality that has some high ranking officials concerned.
LI TIE (Translation): The central government must control urbanisation, it must stop any fanatical actions by local authorities who blindly and hastily implement unreasonable urbanisation measures.
Li Tie heads the country’s top economic planning agency. For such an influential figure, his language is refreshingly frank.
LI TIE (Translation): Urban planning in many cities is done at the will of the governor. A governor may be fond of a Western urbanisation model and may want to replicate it to prove that their city can out-perform the West. These urbanisation efforts are superficial.
Links on China's credit growth
- Fitch on China: "There Has Been No Progress in Rebalancing the Economy Away From Investment Towards Consumption, Year to Date." (DV)
- Moody's: Chinese Property Developer Margins Under Pressure (DV)
- The Sum of Bad Debt Fears at China's banks - Reuters TV (DV)
- Kynikos' Jim Chanos: Every Three to Four Years China Doubles its Debt Relative to its GDP, Still Short China (CNBC Video) (DV)
- Is China Just Following the Fed? - Reuters TV (DV)
- Chinese Banks: Indebtedness Continues to Rise, With No Deleveraging in Sight - Fitch Ratings (DV)
- Inside China's Surreal Housing Bubble (60 Minutes) (DV)
- China’s spending 39% of its GDP paying off debts (Quartz)
- $3.9 Trillion Of Local Gov Debt In China . . . And Counting (Forbes)
- New Warning Issued on China Local Government Debt (WSJ)
- China's Local Government Financing Vehicles (LGFV): 7 Things You Should Know About China's Local Debt Bomb (IBT)
- State Researcher Says China Local Debt May Top 20 Trillion Yuan (Bloomberg)
- Researcher Puts China's Local Government Debt at $3.3 Trillion (WSJ)
- Fitch's Charlene Chu: China Will Have Replicated the Entire U.S. Commercial Banking System in Five Years (Video) (DV)
- China Economics Seminar: The Real Risk In China’s Local Government Debt (INET)
Links on China's urbanization and GDP growth
- China's Third-Quarter GDP Grows 7.8% - AFP (DV)
- How to Profit from a Changing China - Guest Post by U.S. Global Investors (DV)
- China, the Global Auto Industry's Best Hope - AFP (DV)
- Revisiting my 2011 predictions (Michael Pettis on China Financial Markets)
- Why China faces 4% Growth pt 2 (Michael Pettis on Business Spectator)
- Why China faces 4% Growth pt 1 (Michael Pettis on Business Spectator)
- China Reforms Likely to Be Slow and Steady: Analysts - AFP (DV)
- World Bank chief: farmers should share benefits of China's urbanization (Sina)
- Urbanization's Cost in China - NYT Video (DV)
- China Running Out of Room to Restructure Economy (Michael Pettis on Bloomberg.com)
- China Reforms Face Headwinds at Home and Abroad (Michael Pettis on Bloomberg.com)
- Party Will Pay the Price for China’s Rebalancing (Michael Pettis on Bloomberg.com)
- The urbanization fallacy (Michael Pettis on China Financial Markets)
- Doubts Rise as China Touts Upturn (WSJ)