Chinese stocks turn biggest losers as global AI trade stumbles

This was the main issue before the communists took over, a massive class of idle rich people who bought up on the land and lived luxurious lifestyles by collecting returns on capital. A massive population of landless serfs who lived paycheck to paycheck, their entire agricultural surplus getting taxed by the landlords.

The Chinese system is designed so that if for some reason you have a shiton of money, theres no way to grow that money infinitely without working.

Your only options are

1. Put it in the stockmarket (The Chinese government extracts profits from the companies when they make too much, caps them if they make too much profit, or demands they contribute to national priorities) 2. Put it into a bank owned by the Government (you lose money due to inflation) 3. Real estate (Many rich people flocked to real estate, until the government said homes were for living in, and not for speculation)

This is why there is a massive corruption network dedicated to funneling money and assets out of china

To get rich in China you need to build a company, To stay rich you need to keep building, your heir needs to keep building.

the state acts as a central aggregator, taking surplus value from capital and converting it into public goods that raise the overall baseline for ordinary citizens