> China's economy is fine even if HK struggles eh? That's an rare statement outside of china. From Michael Pettis: +++ Overinvestment – Its political and eco

> China's economy is fine even if HK struggles eh? That's an rare statement outside of china. From Michael Pettis: +++ Overinvestment – Its political and economic systems are now dependent on elevated levels of investment spending. Moreover, a decreasing amount of those investment dollars are able to generate net-positive financial or social returns. Currency undervaluation – Money printing and excessive foreign reserves are creating imbalances that will be very hard for the central authorities to unwind without painful repercussions. Over-indebtedness & low interest rates – Much of China's new borrowing is used to pay interest on current debt. Any material rise in interest rates is sure to create a cascade of insolvencies. Asset bubbles – Much of Chinese wealth is tied up in assets that are exhibiting dangerous levels of price inflation, real estate being a prime example. (Property prices in Beijing and Shanghai are higher than Manhattan, which is astounding considering the much lower average Chinese income) +++ <https://www.peakprosperity.com/michael-pettis-the-future-of-china/> https://www.peakprosperity.com/michael-pettis-the-future-of-... which to be clear is from 2013 but I don't believe much has improved since (not an economist or china-watcher though)