Wealthy Chinese individuals are facing difficult decisions amidst the stock market crash in China, according to experts. The ongoing plummeting of China’s stock market has resulted in heavy losses for countless mainland Chinese investors, including the upper-middle class and middle-class citizens. These individuals are now being gradually stripped of their assets by the Chinese Communist Party (CCP), leaving them with two options: flee the country or fight back.
Since the beginning of the year, China’s stock market has continued to decline, with the Shanghai Stock Exchange Index reaching its lowest point in years before the lunar new year holiday began on February 9th. As a result, millions of Chinese stock investors have taken to social media platforms to express their distress and seek help from foreign embassies in an attempt to save the value of their investments.
The predicament faced by investors in China is exemplified by the tragic suicide of Cao Xin, the founding partner of Tianli (Shanghai) Asset Management Co., Ltd. Cao’s suicide was reportedly driven by the stock market crash, which cut off his funds supply chain due to the sharp decline in the stocks he held. Desperate to equalize his funds, Cao borrowed a significant amount from loan sharks but was unable to repay the loan when the Chinese stock market fell further.
Another individual, Xiao Yu, revealed in a video on social media that he had lost over 5 million yuan ($703,000) in stock trading over the past ten years. He is now left with no assets, unmarried, and burdened with a debt of 3.5 million yuan ($492,000). Xiao confessed that he had contemplated seeking revenge by taking action at the Shanghai Stock Exchange and even attempted suicide multiple times due to his losses in the Chinese stock market.
These stories highlight the dire situation faced by Chinese investors and reveal that even the middle and upper-middle classes are at risk of losing their wealth. Statistics indicate that among China’s 1.4 billion population, 600 million individuals have a monthly income of only 1,000 yuan, while 900 million people earn less than 2,000 yuan per month. It is estimated that 200 million Chinese have invested in the country’s stock market.
According to Frank Xie, an associate professor of marketing at the University of South Carolina Aiken, the CCP and those in power control the media and manipulate information to deceive individual Chinese investors. Xie argues that the middle and upper-middle classes should be the backbone of the Chinese economy and the primary consumers, but the CCP exploits them instead.
In response to the worsening stock market situation, China’s securities regulator announced new restrictions on February 7th, banning short-selling and only allowing buying stocks. However, this move may not be enough to alleviate the concerns of investors who are witnessing their assets dwindle.
As a result of the stock market crash and various government policies that suppress the rich, many wealthy Chinese individuals are choosing to flee the country. Taiwanese financial expert Huang Shicong believes that with real estate, stock market, financial products, and even the renminbi depreciating, combined with the suppression of the rich by government policies, wealthy Chinese individuals are feeling increasingly uneasy under the leadership of Xi Jinping.
However, not everyone has the means to escape China with their wealth. Yuan Hongbing, an Australia-based scholar, suggests that the CCP’s actions will eventually trigger resistance within the country. He believes that every policy implemented by Xi Jinping is pushing China’s domestic politics towards national resistance and popular uprising.
In conclusion, the stock market crash in China has not only affected ordinary investors but also wealthy Chinese individuals. The CCP’s control over information and manipulation of the stock market has left many investors devastated and struggling to recover their losses. As a result, some are choosing to flee the country, while others are considering fighting back against the oppressive regime. The future of China’s stock market remains uncertain, and only time will tell how the situation will unfold.
