Is China’s Stock Market Bubble Simply A Massive Reverse-Robin-Hood Scheme To Bail Out The Rich?

Yes. And it’s not just China that does this.

(From Zerohedge)

Using comprehensive administrative data from China, we document a substantial increase in inequality of wealth held in risky assets by Chinese households in the 2014–2015 bubble-crash episode: the top 0.5% households in the equity market gained, while the bottom 85% lost, 250B RMB through active trading in this period, equating to 30% of each group’s initial equity wealth.

In comparison, the return differential between the top and bottom groups in periods of a relatively calm stock market is an order of magnitude smaller.

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