3 ms·
The reason I think - China is choked for capital. Yes, there is money, but not a lot. Unless you are doing are doing a government contract (i.e. building infras
by wisty 15y ago
The reason I think - China is choked for capital. Yes, there is money, but not a lot. Unless you are doing are doing a government contract (i.e. building infrastructure) or are in real estate, you don't get much capital. Interest rates are artificially low, but only if you can get a loan - i.e. you look very very safe. Why bother investing in business, when you can borrow at a low rate and invest it in houses?
Chinese businessmen look rich. Some of them do have a lot of money, but most are just richer than the average Chinese worker. And because the poor Chinese workers are poor, they can't bootstrap their way up so easily.