Chinese people have amassed a lot of wealth but their investment options are very limited. Hence the Chinese stock market bubble, property-building bubble and Ponzi schemes.
I think the problem is, there simply is no venue for them to invest in. Real estate and the stock market, as you mentioned. The only other places would be commodities, which are tanking.....due to demand falling off in China.
What do you do when there is nowhere to invest your excess funds? (not rhetorical) You either invest in riskier asset classes, or you don't need to generate as much income (work less perhaps?)
toomuchtodo|10 years ago
What do you do when there is nowhere to invest your excess funds? (not rhetorical) You either invest in riskier asset classes, or you don't need to generate as much income (work less perhaps?)