In the last 5 years retail Chinese investors had massive losses in bitcoin, gold, the local stock market, bitcoin again, now P2P.<p>Is it fair to say that they rush from one investment fad to the next, typically buying the top? This is how it looks from far away, can someone with local knowledge comment?<p><a href="http://static.atimes.com/uploads/2015/07/retail-investors.jpg" rel="nofollow">http://static.atimes.com/uploads/2015/07/retail-investors.jp...</a>
There is a huge structural issue when investors of all asset classes believe the central government will bail them out. It happens to a vastly lesser degree elsewhere. We saw the folly of it in the US in 2008.
I wonder if the average Chinese is aware of these problems if not affected by them directly. If it is not reported in media and you don't know anyone who's affected then how would you know about this?<p>And knowing about is this important, so you don't put your money in such an investment.
I really don't understand what the Chinese gov't expects when they are trying to control damn near everything. I honestly believe they are convinced they've successfully hacked capitalism.
A bank is a bank, even if it's not called a bank.<p>This kind of wild west capitalism will eventually halt or at least stifle Chinese progress and growth, just because the risks of investments is too large.