The ‘Shā Chén Bào’ Of Money is Wealth Destruction
• Large-scale capital projects grow
sillier by the day
– New South China Mall – world’s
largest and loneliest
– New Ordos – empty city in Inner
Mongolia
– Sky City One – world’s tallest building
to be built in only 90 days
• Massive infrastructure spending
continues
– 1,188 new shopping malls by 2015
– Airports: 14 opened in 2012 and 12
to be constructed in 2013
– Subways: 28 cities get approval to
build or expand subways
• Feasibility is secondary thought
– Overstate revenue and understate
maintenance costs
– Is economic depreciation being
factored in?