Seeking Alpha

Bogus data may be adding $1T to Chinese economy

  • "Willfully fraudulent" inflation and GDP data could have China's true GDP overstated by 8-12%, or nearly $1T, according to a new study from Peking University.
  • Beijing's numbers have always been treated with skepticism, but this report is the first to try quantify the scale of the manipulation. "It is disturbing that a statistical body would so obviously manipulate and produce blatantly fraudulent data," says report author Chris Balding.
  • One particular boner: Official stats have private housing prices up 8.14% over the last 11 years. "The claim that the housing component of CPI grew by less than 10% between 2000 and 2011 is nothing less than comical," writes Balding.
  • China broad equity ETFs: FXI, GXC, PGJ, YAO, FCHI, PEK, CAF, YXI, XPP, FXP, MCHI, YINN, YANG, TCHI, CHXF, KFYP.
Comments (1)
  • 6151621
    , contributor
    Comments (1174) | Send Message
     
    So Chinese Data is circumspect? What's new? Many articles are coming out detailing how US Homes Sales may be bogus since so many are investment related cash sales and not people buyers. My point is US Data is circumspect (e.g. CPI or Home Sales), as well...How does poor modeling = "Willfully fraudulent?"
    16 Aug 2013, 04:19 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs