China Growth Stocks

[GorillaGorilla]

Interest Income: I only know the orthodoxy... In China they **** the savers and offer a low deposit rate and loan it out at a much higher rate to businesses (normally government businesses). So, savers are subsidizing business loans in China - and hence subsidizing growth in China.

Ahem, which is why savers prefer to buy houses with their cash.


This was from 2007....

The one-year benchmark lending rate will be raised to 6.39 percent from 6.12 percent, and the one-year deposit rate will be increased to 2.79 percent from 2.52 percent, according to a statement on the bank's website [1]

Beyond that, I have no knowledge over what businesses deposits are offered in China. But without more information 2% seems reasonable.

- business usage of cash has been discussed a bit and I'm not going to add to this.

[1] http://www.chinadaily.com.cn/china/2007-03/17/content_830297.htm