Hugh Hendry Walks the Streets of China
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July 30th, 2009 by Prieur du Plessis, Investment Postcards from Cape Town
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This home-made clip features Hugh Hendry, founder of Eclectica Asset Management, walking around the streets of China (Central Business District, Guangzhou), earlier this year, March, and pointing out numerous empty buildings. Huge debt must have been incurred in erecting these buildings and without tenants there is no prospect of servicing the debt. What’s more, the workmanship also seems shoddy as a nearly-completed 13-story building in Shanghai collapsed last month.
Who will pick up the tab for creating all the overcapacity in the Chinese economy?
Hendry has perhaps looked at only a limited sample, but the video provides food for though in the greater economic scheme of things.
Source: YouTube, March 27, 2009 (hat tip: Edward Harrison, Credit Writedowns).
Dr. Prieur du Plessis is an investment professional with 26 years' experience in investment research and portfolio management. More than 1,200 of his articles on investment-related topics have been published in various regular newspaper, journal and Internet columns, including his blog, Investment Postcards from Cape Town. He has also published a book, Financial Basics: Investment. Prieur is Chairman and principal shareholder of South African-based Plexus Asset Management, which he founded in 1995. The group conducts investment management, investment consulting, private equity and real estate activities in South Africa and a number of foreign countries. He also serves as Honorary Consul of Slovenia for South Africa, actively developing economic, cultural and scientific relations between Slovenia and South Africa. Prieur is 54 years old and live with his wife, television producer and presenter Isabel Verwey, and two children in Cape Town, South Africa. His leisure activities include long-distance running, traveling, reading, motor-cycling and scripophily. Read more from the author/contributor here.
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