Dialogue 09/08/25 Does investment result in imbalance

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Intro:

Hello, I am Yang Rui with Dialogue brought to you live from Beijing. Asia saw an astonishing rebound in recent months although Western economies still look weak and spending confidence still low.

China’s robust recovery due to the massive stimulus package has drawn mixed responses although GDP growth rate for the second quarter is put at 7.9 percent. Investment in construction of roads, railways and other parts of infrastructure has allegedly gone to state-owned enterprises with domestic consumption accounting for a minor percentage of 8 in the budget allocation.

Has the investment greatly improved the overall structure of the Chinese economy amidst the current financial crisis? Overseas media says that imbalance has been reinforced as a result. Is it a good time for Chinese investment to scoop up the overseas under priced assets? Today we are joined here live by Mr. Charles Liu, managing partner of Hao Capital and Mr. John Kuzmik, Asia of Baker Botts.

Background report: