/biz/ - Business & Finance

>>54327068
>i always thought it was because their companies are state owned/overseen by state workers embedded in-house so they can pull the plug at any moment?

This is a goyscare. Just like parents tell their children about the boogie man to keep them from going outside at night. In reality, the federal government is as likely to seize your assets as China. Because (1) it is fundamentally on the verge of bankruptcy and (2) it has a history of doing it shamelessly. Also, we can consider the radical policies of the Federal Reserve as a constant ongoing implicit seizure of either assets or wages depending whether it is inflationary or deflationary. Yuan-denominated asset exposure guards you against this type of theft, as the PBOC is mindfully conservative. Their QE is the Fed's QT.

>>54327087
I challenge you to look at the performance of the Shanghai Composite Index and the underlying P/E Ratio and tell me that it's more risky than the S&P 500 built on top of 14 years of unlimited QE.

Real estate has been objectively more profitable and secure for Chinese retail investors as millions upon millions of people have moved from villages to cities, in comparison their stock market hasn't performed that great. But even now the situation is reversing as the real estate market has pretty much peaked. 65 million empty flats. I think the trust issues are hereditary and cultural more than rational and stem from rustic boorishness most Chinese have still not escaped from. They want something tangible. Institutions on the other hand are in stocks. HK is famous for its masses of retail investors in stocks. Young people who have worked in an office their whole lives are more open to stocks and other assets. Remember how big the Chinese crypto market was? Real estate is just the boomer thing.