China's Stock Market Lowest in the World -- Unsustainable Economy

Follow us on TWITTER: http://twitter.com/cnforbiddennews Like us on FACEBOOK: http://www.facebook.com/chinaforbiddennews On the last day of 2013, China's stock market closed with the Shanghai Index at 2,115.98 points - down 6.75 percent from 2012. This is a big contrast to the three major U.S. stock indices and the European stock indices that are climbing up. It is also the lowest one in the Asian market. On January 1 2014, Deputy Minister of the Ministry of Finance of the Chinese Communist Party (CCP) lamented that China's economy is unsustainable. On the last day of 2013 the U.S. stock market set a new record, with annual increase hitting a 16 year high. U.S. Dow Jones Industrial Average and the S&P 500 index both passed the peak before the financial crisis, setting new records. Upon closing on December 31, the Dow Jones index rose 26.5 percent year-round, the biggest gain since 1995; Standard & Poor's 500 index rose 29.6 percent year-round, for the best performance since 1997, the Nasdaq composite index rose 38 percent year-round, since 2009 self the largest increase. European stock indices rose 17.3 percent in 2013, the highest in the past four years. Upon closing on December 31, the pan-os Trafigura 600 index rose 0.3 percent to 328, a five and a half year high. All Asian stock indices grew in 2013 except Thailand and Indonesia with an annual decline of 6.7 percent and 0.98 percent. Japan's stock market rose the highest with the Nikkei climbing 56.7 percent to at 225, the highest annual growth rate since in 1972. The Chinese stock market not only did not rise, it dropped even further than Thailand, a county with continuous street protests and chaos in the capital city. As of December 31 the Shanghai index reported 2,115.98 points, an annual decline of 6.75 percent, and the fourth consecutive year at the bottom of the global market. The lowest point in 2013 hit 1,849 points, over one trillion yuan in market value evaporated. directly leading to deterioration of wealth. On January 4 2013, CCP official media published an article predicting that in 2013 the Shanghai Composite Index is capped at 3,600 points and is expected to exceed 4,000 points. But the result was just the opposite. Chinese civil economist Mr. Deng: "The stock market is the country's economic benchmark. It is more like a trend. It has already felt the coming winter. Now is the cold winter. At least for now it is a phased alert." In recent years, overseas economists have been talking about the hard landing of the Chinese economy. The CCP's new leadership also realized the extent of the danger after they took power. Discussions around deepening and comprehensive reform are rumored. On January 2014, CCP party journal Seeking Truth published CCP Ministry of Finance Deputy Minister Wang Baoan's article. For a long period of time, China's economic growth showed the typical "Four-High and Four Low" feature: "High Input, High Consumption, High Pollution and High Speed" and "Low Output, Low Efficiency, Low Return and Low-tech." Wang Baoan acknowledged that China's current economy is unsustainable. Mr. Deng: "We did not land. We dropped into the ditch. Go around and see the real economy, and the problems in all walks of life. Private entrepreneurs are most qualified to speak. Didn't the capital outflows some time ago prove a very dangerous signal?" Wang Baoan said China's GDP energy consumption unit is 2.6 times the world average. China's GDP created per employee is only 21% of the U.S. and 32% of Japan. Over the years China's industrial added value rate is between 26% to 30%, while in developed countries it is generally about 35%, with U.S. and Germany surpassing 40%. It is estimated each US $1 growth of China's GDP needs about $5 investment. The capital investment costs 40% more than Japan and Korea during their economic take-off. China's investment rate is close to 50%, some provinces even up to 80%. China's Financial Analyst Ren Zhongdao: "The CCP regime leads to the government investment model for GDP Increase. The investment does not work now. For each dollar invested, only dozens of cents are produced. It cannot lift economic growth now." The latest report of the CCP's National Audit Office shows that as of the end of 2012, 3 provincial, 99 city-level, 195 county-level and 3,465 township governments bear the responsible for paying a debt ratio of over 100%. Wang Baoan believes that the way out for the Chinese economy is to build an upgraded version of reform -- breakthrough the system to promote scientific and technological innovations. Zhen Zhongdao: "All changes are done to protect the regime and the party. There are not done proactively. The compromises and changes are not for people's well-being, or for the country's economic turnaround." Economists indicate the U.S. Fed's exit from quantitative easing 《神韵》2014世界巡演新亮点 http://www.ShenYunPerformingArts.org/