Bonnie: thank you. China has a very lousy taxation system, a lot tax codes are not there and some of them are there could not be enforced because the Central gov. just don't have enough resources and man power to do that. 99% individual do not need to pay personal income tax, and there is no sale tax. The gov. said income above certain figure should pay tax, but since there is no tax withholding system, so those millionaires can get away without paying any. That is why it is much easier to become a millionaires in China than in US. This is also why the central gov. in Beijing is virtually bankrupt. And since education and hospitals are mostly sponsored only (but they are changing rapidly) by the gov. so a lot of them are poorly maintained.
Social security (China's type) now is starting to develop, but not in 401k format, only in insurance form.
And another thing is that there is a huge difference bet. the Chinese who come from Southern part of China, like Shanghai, or GuangZhou, etc., and the people from Northern part China. The former are more business like, and they, mostly younger people, like to play stocks if they can afford. They are more like Taiwanese (ask some people from Taiwan about the popularity of stock market there). But Northern Chinese are less business-like. So I don't think Stock can ever win any big popularity in Beijing.
Best. |
