Expert: descent 2014, the big issue

China's economy is shrinking: Stock market, Yuan and property bubble

of Yiyuan Zhou and Rosemarie Fruehauf , Friday 14 March 2014 12:28

In the past two months, China's economic power has declined significantly in the most important areas: Financial and yuan are in decline, the exportis weakening and the real estate bubble is visibly running out of steam.China's well-known economics commentator Niu Dao predicted in his latest blog post that continue the general decline further in 2014 and the dominant issue will be in China's economy.

February exports declined drastically

According to a report by the Chinese Customs Office, the export volume declined in February 2014 by 18.1 percent compared to February 2013.This led to China a foreign trade deficit of 22.98 billion U.S. dollars.

An economic researchers at the Bank of Communication, Tang Jianwei, told Chinese media that the demand for cement in the Chinese market has continued to decline in January and February, which is related to the slowing down in the housing market. On the futures market fell construction materials such as metal, coal and steel 14 to 20 percent.

Exchange scrapes the 2000 point mark

At the Shanghai Stock Exchange SSE index declined since the beginning of 2.86 percent - already partly below the psychologically important threshold of 2000 points. (Before the 2008 financial crisis five years ago, he had stood at 6000 points).

Also, the Shanghai-Shenzhen-Combined index for both markets is China, is located at the lowest level in five years.