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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Julius Wong who wrote (148897)	5/31/2019 3:06:51 PM
From: Elroy Jetson	1 Recommendation Recommended By elmatador Respond to of 217802

China Proposes Luxury Tax Increase to Rein in Debt of Millennials - jingdaily.com This is part of a much larger financial problem Millennials face in China - amassing the huge $8,000 net worth of American Millennials is impossible, so Chinese Millennials simply go deeper into debt “Young people in China have little or no savings but they borrow to purchase luxury items," said Cui Bo, a member of the National Committee of the Chinese People’s Political Consultative Conference. This behavior of over-spending turns many of them into a ‘Moonlight Clan.’” The term Cui used (Yue Guang Zu in Mandarin) refers to a large group of people, especially youths, who spend their entire salary before the end of each month. A survey from HSBC last year shows that the debt-to-income ratio of China’s post-’90s generation (typically referring to individuals born between 1990 and 1995) has reached a staggering 1,850 percent. Meanwhile, the average amount of debt this group owes to a variety of lending and credit-issuing institutions is over $17,433 (RMB 120,000). China should increase the luxury goods tax rate as a way to curb younger generations’ irrational spending on luxury brands, a Chinese official proposed at the country’s annual “Two Sessions” last week in Beijing. The “Two Sessions,” which typically convenes in the first week of March each year, amasses a group of China’s social, economic and political elite in Beijing to discuss urgent problems the country faces and their potential solutions. “Our country has become the largest luxury goods market in the world,” said Cui Bo, a member of the National Committee and an official of Northwest China’s Ningxia Hui Autonomous Region, during the conference. “Some Chinese are saving money for a year in order to purchase a piece of luxury goods.” Consequently, Cui suggested China needs to regulate young people’s luxury consumption and restore a culture of frugality to rein in hedonism and consumerism among the Millennial and Gen-Z generations. Recommended Reading Can China’s Debt-Ridden Youth Continue to Prop Up Luxury’s Future? Cui’s proposal points out a serious problem that can jeopardize the sustainability of the luxury industry in China — the consumer credit bubble. The Chinese term that he used to describe the Chinese Millennials’ purchasing behavior may only capture a part of the problem. The “Moonlight Clan,” spends more than they make, leading to a debt burden. In the luxury consumption sphere, a lot of consumers borrow from various credit-(re)issuing institutions from banks and credit unions to digital lending platforms from Alibaba, JD.com, and Tencent, to cover their continued spending. It is even common for some of them to open a new line of credit in order to repay previous loans. Cui is especially concerned about "influencers" in regions like Hong Kong who make online postings of flamboyant meals and luxury goods. "These Chinese Paris Hiltons are rear-guard agents leading Chinese youth into a culture of dissipation." Though there is no certainty that Cui’s proposal will become law anytime soon due to China’s complicated rule-making process, it shows that the government has become aware of Millennials’ unhealthy spending on luxury goods. Regardless of whether the government intervenes, the country’s debt-laden Millennials’ consumption pattern is worthy of luxury brands’ full attention.

To: Julius Wong who wrote (148897)	5/31/2019 3:30:22 PM
From: ggersh	Read Replies (2) \| Respond to of 217802

Take away the banks, Chinese millenials doing ok

To: Julius Wong who wrote (148897)	5/31/2019 5:48:14 PM
From: TobagoJack	Respond to of 217802

macro is global, and that affects local good news ... besides freedom HK avocado supply shall be cheaper courtesy of Trump that the Mexicans pay for ... scmp.com Greater Bay Area a beneficiary as US-China tensions heat up, HSBC adviser says Domestic consumption in China will be an important factor in the country’s future growth, George Leung Siu-kay says Companies in the Greater Bay Area could benefit as the area becomes more integrated, he says Chad Bray Published: 8:00am, 31 May, 2019 A trade war between the world’s two largest economies could speed the development of the Greater Bay Area as China focuses more on domestic consumption, an adviser to HSBC Asia-Pacific said Thursday. Speaking on a panel at HSBC’s Greater Bay Area Exchange Forum, George Leung Siu-kay, an adviser to the deputy chairman and chief executive of the bank’s Asia-Pacific business, said that domestic consumption in China will be an important catalyst in the future – one that companies in Hong Kong, Macau and Guangdong province can tap as the area becomes more integrated. “Likely the pace of development will move faster than expected because of this situation,” Leung said on Thursday. Washington and Beijing have been locked in a tit-for-tat dispute over trade and China’s industrial policies since last year, with the US threatening to place tariffs of 25 per cent on nearly all goods exported from China. Beijing has responded with its own tariffs and the two countries remain far apart, after just weeks ago looking to be close to a deal. Leung noted that it does not seem that trade tensions between the US and China will be resolved quickly and it could “take a long time before everything is back to normal”. As a result, the Greater Bay Area initiative will be even more important, he said. The initiative is designed to increase ties between Hong Kong, Macau and nine cities in Guangdong province as part of an effort to improve economic development in the region and boost the flow of trade, capital and people in the area. The Greater Bay Area had gross domestic product of US$1.6 trillion last year, making it larger than Australia, according to HSBC. That could top US$4.6 trillion by 2030, Helen Wong, HSBC’s chief executive for Greater China, said. “The Greater Bay Area as a whole can start to function as an integrated supply chain,” Wong said. “What might this look like? Research developed by a Hong Kong start-up working in partnership with a local university is used to create a prototype in Shenzhen. Once refined in the lab and financed by a private equity investor in Hong Kong, a final prototype is mass produced in a Dongguan factory. The finished products are then shipped domestically and overseas from Guangzhou.” Patrick Nip, secretary for constitutional and mainland affairs of the Hong Kong government, said that the Greater Bay Area initiative could “inject new energy” into the city’s development and allow Hongkongers additional places to live and work. He stressed that Hong Kong’s uniqueness and the “one country, two systems” concept of government is an important foundation of the Greater Bay Area. “One country, two systems is one of the important elements of our success,” Nip said.