China's 10-year Treasury yield stands at 1.65%.

China's 10-year Treasury yield stands at 1.65%. The collapse of the property market, and the stock market's tumultuousness have greatly dampened investor sentiment and people have been thrust into long-term deposits.

The problem is that banks can't afford these deposits either, because there's nowhere to lend them. There are more than 81 million unsold houses, and there are no companies that can get loans at a net profit.

In the absence of profit from the loan-to-deposit margin, deposits are flooding in, and banks are buying government bonds to lower interest on deposits and give them interest on deposits. China is now in an infinite vicious cycle.

2.2% loan interest, 1.6% deposit interest, 1.65% deposit, purchases government bonds.

This will not be the structure of the normal financial industry.

Shouldn't the Chinese also do Nasdaq?

China is not Korea. Capital inflows and outflows are limited and foreign exchange transaction regulations are strict.

Individuals can purchase foreign exchange up to $50,000 per year or transfer money abroad, but if they do, they have to risk being blacklisted.

It is a system in which the National Foreign Exchange Administration approves overseas investment and the authorities review and approve whether it is essential or non-essential for business when acquiring real estate and financial assets.

The goal of the People's Bank of China is to prevent the outflow of funds and stabilize the financial system

It manages the yuan to become the reserve currency of China's sphere of influence. It dreams of easing trade settlement measures. It does not allow a large amount of relief to be withdrawn to purchase dollar assets.

Nearly 100 million unsold homes and stock investments that rarely recover after the stock market crash in 2023.

What happens when a capital market where multiplexes have disappeared has only term deposits left?

What are the options for China in the face of a series of zombie companies due to poor real estate assets and economic downturns?

In the meantime, China's innovations in AI, electric vehicles, and robots are great. However, can that technological innovation lead to added value and emerge as an item to save China's finance and real economy?

Hegemon Challenge Ended With Japan's Real Estate Bubble Collapse. Will China Repeat?

I referenced the Economist Report Plus Chatgpt search results. It's a real spectacular world.