well this is a clear signal that Chinese government has failed to control the stock market. I can't believe how naive they were thinking they could control something that is traditionally found only in non-command economies.
My guess is that they are going to come up with some bullshit like foreigners are driving down the stock prices, blame the Western devils for being homeless.
Well, it's not like people are going to go up to arms about it, it is a communist country after all, and we've seen how well Soviet Union did in keeping people in check even at the shittiest time.
That's like saying the Democratic People's Republic of North Korea is 'Democratic'. Which is to say, it's totally not.
They might call themselves that, but for the last few decades China has been communist in name only. It's far more capitalist than any western country I've lived in.
> >it is a communist country after all,
> That's like saying the Democratic People's Republic of
> North Korea is 'Democratic'. Which is to say, it's totally > not.
I would not bet on this. They still have (opposed to for example the US) the idea of increasing the living conditions for all Chinese. They are quite homogeneous (Yes, I know, Han Chinese are the majority), have a strong cultural identity and identify with their country (not necessary with their government). The huge discrepancies in wealth could be easily reversed after the market economy did it's deed. I think this is one reason why all rich Chinese want to get their wealth out of the country ASAP.
> The huge discrepancies in wealth could be easily reversed
I don't think it could easily be reversed - you'd need a revolution. Not only because the higher ups have far too much skin in the game to want to reverse a system that generates huge wealth for themselves and their entire families, but they also know that the country needs capitalism and a market economy.
At the end of the cultural revolution, they also knew that after decades of proclaiming the evils of capitalism, it'd be a tough sell to the general population to just suddenly about face and say 'oops we were wrong, capitalism is good after all' and so we have 'socialism with Chinese characteristics' and a bunch of other things that are basically rebranded capitalism and that gives the general populace a warm fuzzy feeling without associating it with any of the cultural baggage terms like 'capitalism' have in Chinese society.
They've already blamed Morgan Stanley, Goldman Sachs, and Soros for having a role:
"In the past few days, rumors have circulated on the Wechat messaging service that “international capital” — or simply capitalism itself — was attacking China. Goldman Sachs and the Hong Kong office of China Southern Asset Management were supposed to be profiting from short-selling the market – rumors that were later rubbished by the China Securities Regulatory Commission. On Thursday, Chinese media also implied that George Soros or Morgan Stanley might be to blame."
Oh, the Chinese definitely don't see it that way. I'm sure my Chinese name is laowai because that is what I'm called everywhere.
I'm neither a citizen, nor a permanent resident. The Chinese don't hand out greencards easily (maybe a few hundred a year) and even then often only to people of Chinese descent.
So... I earn RMB and live in China... but I'm totally a foreigner. In fact, foreigners can't really become permanent residents of China, especially if you're not of Chinese descent.
I never heard about this. As far as I know you need to be Chinese to buy A-Shares. Having RMB or being paid in RMB is irrelevant since even a tourist can open a bank account in China or HK.
I think if you present your income tax receipts (your money was earned in China), as long as the money is earned in China. there are all sorts of problems that go away with income tax receipts since not any tourist can get a job and earn money domestically.
My guess is that they are going to come up with some bullshit like foreigners are driving down the stock prices, blame the Western devils for being homeless.
Well, it's not like people are going to go up to arms about it, it is a communist country after all, and we've seen how well Soviet Union did in keeping people in check even at the shittiest time.