Xinhua recently reported that the Chinese stock market suffered another slide and the Shanghai Index is over sixty percent lower than it was at its peak point. Although the Chinese GDP is the world’s number two, only behind the United States, experts suggested that the Chinese stock market is close to being the worst bear mark in the world. China’s latest CPI (Consumer Price Index) showed an increase of 3.2 percent this year, while the Chinese central bank base savings interest rate is three percent. Thus working-class wealth in the banks is suffering an effective “negative interest rate.” In the meantime, both international and domestic gold prices are dropping. The Chinese financial market currently has nothing to offer working-class people to enable them to safeguard their money. Even investments in precious artwork do not bring a positive return. Experts called for more reliable financial investment channels and products to help today’s Chinese working-class protect their wealth.
Source: Xinhua, April 7, 2013