Goldman Sachs on China's economy: Confidence a big problem, private investment very weak

Goldman Sachs Goldman Sachs Goldman Sachs is a multinational investment bank and financial services company headquartered in New York City. It was founded in 1869 and is one of the largest and most well-known investment banks in the world.Goldman Sachs has a mixed reputation. On one hand, it is known for its expertise in investment banking and its role in many high-profile financial deals. On the other hand, it has faced criticism and controversy over the years, including accusations of unethical business practices and con Goldman Sachs is a multinational investment bank and financial services company headquartered in New York City. It was founded in 1869 and is one of the largest and most well-known investment banks in the world.Goldman Sachs has a mixed reputation. On one hand, it is known for its expertise in investment banking and its role in many high-profile financial deals. On the other hand, it has faced criticism and controversy over the years, including accusations of unethical business practices and con Read this Term analysts cited in a media piece (gated):

• “Confidence is a big problem”
• “For consumers, there are concerns about the future — you don’t really want to spend. Private investment is also very weak. You talk to entrepreneurs, there is still a reluctance to engage.”

China's growth target for this year is around 5%, and with youth unemployment climbing:

• youth unemployment hit record 20.4% in April

social stability is high up on the scale of Chinese Communist Party concerns. More support for the economy does seem likely. The People's Bank of China seem to be responding by allowing the currency to weaken, to bolster export income:

Via various Chinese (and other) sources we hear much about de-dollarization. Its baloney, don't get sucked into it. Where the rubber hits the road the People's Bank of China is de-yuaning!