China Economic Weekly - November 1, 2011
A loosened national loan policy introduced during the 2008 financial crisis has reportedly caused the hoarding of traditional Chinese medicines (TCM), leading to asset bubbles among both retailers and producers of TCM. However, since traditional medicines are priced by the government, producers have failed to turn a profit on the sale of TCM, resulting in the bubble bursting and a 90 percent drop in the autumn of 2010. Now, over 90 percent of China’s TCM producers and salespeople are reporting massive losses while buyers hold out for the market to hit bottom, resulting in the spoilage of countless tons of premium TCM products.
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Badeling Pass | Beijing
Sep 2011 | Submitted by Brian Snelson
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