China's Gini coefficient is higher than all developed countries

China's Gini coefficient is higher than all developed countries
Feb 24, 2008 22:14	#21
MARRIE Points: Join Date: Jan 7, 2008 Status: Offline	The People's Bank of China last month noted that savings are being diverted by households and companies into stocks. The central bank's benchmark one-year deposit rate, a ceiling for deposit rates commercial banks can offer, is 3.06 percent, little more than the nation's 3 percent inflation rate. Paulson Presses U.S. Treasury Secretary Henry Paulson is pressing the Chinese government to broaden its market size, regulations and infrastructure so that if stocks do drop, they do so in an orderly fashion. Chinese Vice Premier Wu Yi last week agreed to raise the limit on foreign stock ownership to $30 billion after talks in Washington with Paulson. ``By any standard this is a bubble,'' said Nouriel Roubini, chairman of Roubini Global Economics LLC and a professor at New York University's Stern School of Business. ``It's a dangerous bubble and it could burst with significant economic and financial consequences.'' Perhaps the greatest worry for investors and central bankers elsewhere is what a downdraft in Chinese stocks might do to investor sentiment globally, said Stephen Cecchetti, a former New York Fed research director. February Rout On Feb. 27, a 9.2 percent slump in China's main index set off a five-day rout that wiped more than $3.3 trillion from the market value of equities worldwide. Another drop could send jitters through the world's markets and economies if investors become skittish about their riskier investments, such as those in emerging markets or the ones funded by money borrowed in low interest rate economies such as Japan. ``Most of us have thought that risk has been underpriced,'' said Cecchetti, who is now an economist at Brandeis University in Waltham, Massachusetts. ``So if there is a catalyst for the repricing of risk, then I think there would be some serious concern.'' Truman and Rogoff said they're skeptical of a direct link between the February drops in Chinese and global stocks, and other economists say Greenspan's predicted crash may not even happen. Individual investors shrugged off the warnings of a bubble, with the CSI 300 Index falling less than half a percentage point in the day after Greenspan sounded the alert. ``At the Fed, Greenspan would say we only know bubbles exist afterwards,'' said Jim O'Neill, chief economist at Goldman Sachs Group Inc. in London. ``Do we know if there's a bubble in China? I don't.'' To contact the reporters on this story: Scott Lanman in Washington at bloomberg.net\|slanman ; Simon Kennedy in Paris at bloomberg.net\|skennedy4 .

Feb 24, 2008 22:14

#21

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The People's Bank of China last month noted that savings are being diverted by households and companies into stocks. The central bank's benchmark one-year deposit rate, a ceiling for deposit rates commercial banks can offer, is 3.06 percent, little more than the nation's 3 percent inflation rate.

Paulson Presses

U.S. Treasury Secretary Henry Paulson is pressing the Chinese government to broaden its market size, regulations and infrastructure so that if stocks do drop, they do so in an orderly fashion. Chinese Vice Premier Wu Yi last week agreed to raise the limit on foreign stock ownership to $30 billion after talks in Washington with Paulson.

``By any standard this is a bubble,'' said Nouriel Roubini, chairman of Roubini Global Economics LLC and a professor at New York University's Stern School of Business. ``It's a dangerous bubble and it could burst with significant economic and financial consequences.''

Perhaps the greatest worry for investors and central bankers elsewhere is what a downdraft in Chinese stocks might do to investor sentiment globally, said Stephen Cecchetti, a former New York Fed research director.

February Rout

On Feb. 27, a 9.2 percent slump in China's main index set off a five-day rout that wiped more than $3.3 trillion from the market value of equities worldwide. Another drop could send jitters through the world's markets and economies if investors become skittish about their riskier investments, such as those in emerging markets or the ones funded by money borrowed in low interest rate economies such as Japan.

``Most of us have thought that risk has been underpriced,'' said Cecchetti, who is now an economist at Brandeis University in Waltham, Massachusetts. ``So if there is a catalyst for the repricing of risk, then I think there would be some serious concern.''

Truman and Rogoff said they're skeptical of a direct link between the February drops in Chinese and global stocks, and other economists say Greenspan's predicted crash may not even happen. Individual investors shrugged off the warnings of a bubble, with the CSI 300 Index falling less than half a percentage point in the day after Greenspan sounded the alert.

``At the Fed, Greenspan would say we only know bubbles exist afterwards,'' said Jim O'Neill, chief economist at Goldman Sachs Group Inc. in London. ``Do we know if there's a bubble in China? I don't.''

To contact the reporters on this story: Scott Lanman in Washington at bloomberg.net|slanman ; Simon Kennedy in Paris at bloomberg.net|skennedy4 .

Feb 24, 2008 22:21	#22
MARRIE Points: Join Date: Jan 7, 2008 Status: Offline	greenspan

Apr 15, 2008 04:31	#23
GUEST41121	I am so surprised how can you find out the ture figure.There have been no official figure in Chinese websites.

Dec 10, 2008 03:38	#24
GUESTTHISSA	Good statistics!!!! if you can data represent by the table with # of year it will be better Thank you thissa

Feb 17, 2010 09:42

#25

GUEST23120

Open market economy or globalization or dominance of extreme capitalism - whatever you call it, has the only consequence - widespread inequality. Unless the state policy takes a public welfare bias, the vigorous economic growth can just become the hottest scorching sun over the poor who have no way to hold an umbrella over the head. And this measurable condition of the poor , by no means can be justified. Because, humanity should be put above all.

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