The flow of craziness out of Washington continues, and it seems amazing that the combination of Russia allegations and healthcare uproar is not having a greater impact on the Trump administration. It’s a highly unstable situation, but at least it’s transparent and China is just so dull in comparison. We had Premier Li’s Work Report to the NPC this week, and there are people out there who wonder if it’s his last. There are big changes to the leadership coming at the end of the year, and it’s not at all transparent. The headline number was “6.5%” for this year’s GDP growth rate, and it’s reasonable to assume that number will officially be hit. Why not?
The other element that struck our eye was an indication that there is no intention during this cycle to introduce property tax. This is the Big One for the leadership, and it’s can’t be delayed forever. But not this year, it would seem… kicked down the road once again.
Two more numbers to round out the week – Forex reserves nudged back over the US$3 trillion line again in February, which probably means a weakening RMB (because they’re using less money to support the currency). And in Shanghai, the first number emerged on the Disney resort, which has done eight million visitors in the nine months it has been open, heading for 10 million for the first year. Remember it’s majority-owned by the party-state. We wonder how Wanda’s Nanchang park is doing, hmmm?
Have a great weekend.