China’s Fictitious Economy and Real Economy Are Seriously Out of Balance
Commentary
China’s economy has gone beyond a reasonable balance between a real economy and a fictitious economy. As Sinopec Chairman Fu Chengyu once said, China’s finance is not going toward a fictitious economy but becoming one. Consequently, it has greatly hindered the sustainable long-term development of China’s economy.
Selling 2 Real Estates to Secure a Public Shell Company
To discuss how China’s economy has gone from real to fictitious, let us first look at an example. In 2016, Beijing-listed company ST Ningtong B, which manufactures communication equipment, suffered losses for two consecutive years and faced the risk of delisting. The company reversed its losses by selling two properties it had owned in the Beijing school district at massive profits. Suddenly, comments such as “go for real estate, forget about starting a business, forget about getting listed, forget about the industry”