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IBDvalueinvestin (98.60)

Chinese Officials fudge economic #'s to analysts expectations.



May 09, 2012 – Comments (7) | RELATED TICKERS: EDC , EDZ , FXI

China's Economic numbers are man made admit Chinese Officials in May of 2011. Can we believe them Chinese economic numbers in 2012? ETF's to watch: EDC EDZ FXI


According to some reports, the government manufactures China’s official statistics. Diplomatic cables published by the whistleblower site Wikileaks earlier this year allege that key Chinese officials have admitted China’s GDP numbers and other reports are largely “man-made.”

The allegation laid bare in the diplomatic cables is supported by discrepancies between China trade data and data reported by China’s trading partners. 


 How can you trade when you can't believe the published economic #'s out of China??


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7 Comments – Post Your Own

#1) On May 09, 2012 at 2:05 PM, Frankydontfailme (29.39) wrote:

Wait a second... really?  They wouldn't do that... would they?

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#2) On May 09, 2012 at 2:53 PM, Valyooo (38.29) wrote:

Breaking news: China defrauds investors; a government entity makes up numbers.

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#3) On May 09, 2012 at 3:13 PM, Frankydontfailme (29.39) wrote:

lol seriously. GDP itself is a fraudulent number, it includes government spending as a main component. By definition government spending increased GDP Keynesians rejoice!

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#4) On May 09, 2012 at 3:31 PM, IBDvalueinvestin (98.60) wrote:

This is why its amazing where EDC is trading compared to EDZ when considering that China is fudging its economic numbers.

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#5) On May 09, 2012 at 3:54 PM, Valyooo (38.29) wrote:

What?  Just because they are fudging numbers doesn't mean anything.  They have probably been doing it forever yet most major corporations have been reporting major growth at their chinese stores.

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#6) On May 09, 2012 at 4:09 PM, Frankydontfailme (29.39) wrote:

Yes, I basically agree with you IBD. China is a very dangerous place to invest for this reason. Nonethless, if they fudge the numbers then they'll continue to fudge the numbers. I think they will especially fudge numbers in this year of political turmoil. I'm actually short term bullish on china.

If copper and the shanghai composite continue lower, I'll change my mind :)

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#7) On May 09, 2012 at 4:12 PM, IBDvalueinvestin (98.60) wrote:

 While economists are often skeptical of China's government figures, Chanos estimates those numbers are way off.

"We are seeing rapid falloffs in demand in things like construction equipment, railway construction over there, housing sales -- so lots of things are slowing down pretty quickly over there," he said.

"It remains to be seen whether that's going to go into a full-fledged recession. I do think the property sector which is where we're focused on, is going to enter -- or has entered a recession."

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