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China’s stock market bubble: A goring concern

economist.com

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Re: China’s stock market bubble: A goring concern

#31

Post by pcrh »

smaili wrote: post #29

> Kemian Wood Industry, which used to boast of the quality of its composite floorboards, took radical steps to deal with the downturn. It switched its focus to online gaming and changed its name. > A hotel group rebranded itself as a high-speed rail company, a fireworks maker as a peer-to-peer lender and a ceramics specialist as a clean-energy group. I've heard of pivoting, but this goes way beyond that. Doing a comp…

It makes you wonder what the determinants of success are for a Chinese business. Would you trust cars made by Nike, if they suddenly started making them, or a airline run by the Hilton Group?

Re: China’s stock market bubble: A goring concern

#32

Post by kordless »

I may be completely off about this, but isn't it the term suppose to be "going concern"? I thought I had discovered a phrase I didn't know, but then I did a Google search and the only occurance is this article.

That said, if China's market goes under it may be pretty gory. :)

Re: China’s stock market bubble: A goring concern

#33

Post by davidw »

crdoconnor wrote: post #27
davidw wrote: post #11

Earlier quoted context omitted.

They also advocate for things like gun control and health care reform in the US. I believe they've also advocated things like a carbon tax, as they give credence to the scientific consensus on global warming. They also tend to be fairly 'practical' in their support for candidates. I recall some years ago when they absolutely laid into Silvio Berlusconi and recommended the left-wing candidate despite Berlusconi being,…

>I recall some years ago when they absolutely laid into Silvio Berlusconi and recommended the left-wing candidate despite Berlusconi being, in theory at least, the more 'business friendly' candidate. They rightly argued that he was mostly just friendly to his own businesses. I seem to recall they were rather taken with the unelected technocrat Mario Monti, as prime minister.

> I seem to recall they were rather taken with the unelected technocrat Mario Monti, as prime minister.

Yes, he - in theory - was in tune with their values. He did manage to accomplish a few things like liberalizing store opening hours, and this: http://blog.therealitaly.com/2015/04/16/fixing-italy-a-littl... but didn't really accomplish as much as many had hoped.

The fact that he was unelected is part and parcel of how the system works in Italy, as the prime minister is not directly elected. For that matter, Matteo Renzi wasn't either.

Re: China’s stock market bubble: A goring concern

#34

Post by phyalow »

kordless wrote: post #32

I may be completely off about this, but isn't it the term suppose to be "going concern"? I thought I had discovered a phrase I didn't know, but then I did a Google search and the only occurance is this article. That said, if China's market goes under it may be pretty gory. :)

Play on words... Extremely "bullish" market, lofty valuations, irrational exuberance, people are going to end up gored when some of these companies (300431, 283.HK, 566.HK etc) end up in dirt and no longer qualify as "going concerns".

Re: China’s stock market bubble: A goring concern

#35

Post by AdmiralAsshat »

kordless wrote: post #32

I may be completely off about this, but isn't it the term suppose to be "going concern"? I thought I had discovered a phrase I didn't know, but then I did a Google search and the only occurance is this article. That said, if China's market goes under it may be pretty gory. :)

I assumed it was "a growing concern". But I can't ding the submitter for copying verbatim from the article title.

Re: China’s stock market bubble: A goring concern

#36

Post by EliRivers »

kordless wrote: post #32

I may be completely off about this, but isn't it the term suppose to be "going concern"? I thought I had discovered a phrase I didn't know, but then I did a Google search and the only occurance is this article. That said, if China's market goes under it may be pretty gory. :)

It's a pun, playing on the well known phrase "going concern". It's a bull market, and people are going to get gored when it stops (which of course is something bad a bull can do to people), which is a concern. A "going concern" is some kind of viable enterprise, so by casting it as a "goring concern" they're alluding to the fact that the stock bubble does not look like a viable enterprise, as well as getting in a reference to bull markets and giving their prognosis. Puntastic.

Re: China’s stock market bubble: A goring concern

#37

Post by eli_gottlieb »

dublinclontarf wrote: post #5
mrec wrote: post #4

Earlier quoted context omitted.

The Economist has always been "The answer is free markets! What was the question?". I always find it a reassuring read, in the sense that well-written, well-researched, persuasive articles that I disagree with are a sign that I haven't been completely engulfed by my own little information bubble, but take it with a pinch of salt.

Actually having lived in China for a significant period of time I can say that the answer is to remove capital controls on Chinese citizens and allow them to invest anywhere else. This will deflate the Chinese market bubble(and property bubble) almost immediately, you'll see this happen however when pigs are flying to the moon.

So China should export its capital glut to the rest of the world, which already suffers a capital glut?

Re: China’s stock market bubble: A goring concern

#38

Post by ngd »

pcrh wrote: post #31
smaili wrote: post #29

> Kemian Wood Industry, which used to boast of the quality of its composite floorboards, took radical steps to deal with the downturn. It switched its focus to online gaming and changed its name. > A hotel group rebranded itself as a high-speed rail company, a fireworks maker as a peer-to-peer lender and a ceramics specialist as a clean-energy group. I've heard of pivoting, but this goes way beyond that. Doing a comp…

It makes you wonder what the determinants of success are for a Chinese business. Would you trust cars made by Nike, if they suddenly started making them, or a airline run by the Hilton Group?

How about an airline run my a record label?

Re: China’s stock market bubble: A goring concern

#39

Post by supercanuck »

ngd wrote: post #38
pcrh wrote: post #31

Earlier quoted context omitted.

It makes you wonder what the determinants of success are for a Chinese business. Would you trust cars made by Nike, if they suddenly started making them, or a airline run by the Hilton Group?

How about an airline run my a record label?

or spaceships.

Re: China’s stock market bubble: A goring concern

#40

Post by pcrh »

ngd wrote: post #38
pcrh wrote: post #31

Earlier quoted context omitted.

It makes you wonder what the determinants of success are for a Chinese business. Would you trust cars made by Nike, if they suddenly started making them, or a airline run by the Hilton Group?

How about an airline run my a record label?

Virgin is a bit of an exception. At the beginning it merely chartered aircraft run by others; it was a branding exercise rather than managing and running aircraft.

Conglomerates like GE do anything and everything, but the companies cited in the article appears to be relatively small, e.g.from making only floorboards to online gaming is quite a shift in operational requirements.

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