Many of China’s better-off have grumbled in private about the policy direction set by the Communist Party leadership under Xi Jinping, who has appeared to prioritise security over prosperity. Photograph: Adek Berry/AFP
It was a prognosis shared by many of China’s better-off as they grumbled in private about the policy direction set by the Communist Party leadership under Xi Jinping, who has appeared to prioritise security over prosperity. In the private dining rooms of Beijing’s more expensive restaurants, evenings would end with a lament for the days when there seemed to be no limit to the money to be made in China and a chorus of grumbling about the difficulty of moving it out of the country now.
Brokers reported a surge in inquiries about opening stock accounts as small investors rushed into the market, some in the hope of quick, speculative gains. A number of banks warned against borrowing to buy shares amid a sudden rise in loan applications, and social media were alive with reports of people taking advantage of lower interest rates to do just that.
When I asked a Chinese friend who tends his shares and bonds every morning like a balcony garden if he got rich during the rally, he told me he had sat it out. “If there’s no money, nothing can change spending behaviour. Chinese only spend when they are making a lot of money. When they have a lot of money but are not making money, they still don’t spend,” he said.