)The top 100 stock
market authors
selected for publication
market authors
selected for publication
别吹牛！
»
Comments
| 
-
The Seeking Alpha 100
See all
Seeking Alpha 100 » -
Fastest Climbers
Authors with the largestSee all
increase in followers
in the last 7 days
Fastest Climbers » -
Top Commenters
Top commenters,See all
as ranked by their peers
Top Commenters » -
Top Instabloggers
The 100 most active
Instabloggers.-
1
David Fry
-
2
TraderMark
-
3
Don Dion
-
4
Cliff Wachtel
-
5
Joseph L. Sha...
Top Instabloggers » -
1
-
Top StockTalkers
TopSee all
StockTalkers.
Top StockTalkers »
Sort by:
Latest | Highest ratedChina's Luxury Goods Market May Escape the Worst of the Global Economic Crisis [View article]
The luxury segment is still growing because of the ultra rich. China's wealth gap is one of the most pronounced in the world. The only way the super rich have the money to spend on these luxuries is because 60% of the population (800 million people) still live without the common amenities in the developed world. Running water, reliable electricity, health care. Please go to the countryside in China and ask them why their government officials and their wives are buying these luxury items. Business people curry favor with these officials by giving them the most expensive item.
Business people in turn recieve favors from the govt officials and earn money because of these favors ie special deals for land, limited competition, special permits. One day the people in the countryside will realize this and try to change it.
The article says that the middle class do not have exposure to the stock market? Maids/secretaries/farmers were all trading in the stock market. Do you think white-collar workers would stay away from it?
30,000 Firms closed their doors in China in a 1 month period at end of 2008. Imports are down 26% y/y and exports down 25 % y/y.
The stimulus explicitly tries to help consumers buy goods that are not luxury items. Providing rebates to farmers to buy LOCAL produced products. Buy small cars etc.
They say that the middle class expects 10-20% salary increases yearly! are you dreaming! People are just happy for their year end bonus. With 6 million college students without jobs your bargaining power isnt to strong.
Most of the people i know who but luxury products wait for someone to travel overseas and bring them back because of taxes here in China or go to HK to buy them.
Seriously questioning the strength of this article/research.