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A comment on The Macroeconomics of Chinese kleptocracy. Parent comment

Re:The Macroeconomics of Chinese kleptocracy by jakarta on Sunday June 10, 2012 @02:55PM (#4091828)
Does it really matter if you have a 1% or 3% rate on your bank account? At the end of it, because of the inflation rate, you still have a negative real rate for deposits which would promote investing elsewhere (like apartments).

I don't see anywhere where he said everyone was speculating on property as a savings mechanism. Obviously some parts of China are very poor. The fact remains though that people are choosing to speculate in property, which is logical given the negative real rates in China.

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Re:The Macroeconomics of Chinese kleptocracy by planetguy on Sunday June 10, 2012 @04:58PM (#4092174)
I assume there are restrictions which prevent Chinese people from easily investing their money in other countries? On the other hand, I assume these restrictions are somewhat permeable which is why you certainly do have rich Chinese buying up property overseas?
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Re:The Macroeconomics of Chinese kleptocracy by mmagin on Sunday June 10, 2012 @08:18PM (#4092703)
In general, Chinese citizens cannot invest in stocks of non-Chinese companies. There may be some ways around that, but that's the general understanding I was given when I was recently talking to someone from Beijing.
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