What Chinese financial repression looks like

I have written much about financial repression in China, how the artificially depressed cost of capital have benefited SOEs and Party insiders, etc. (see this link for past posts). The current round of purges is one way of addressing that issue so that financial reforms can be effected (see IMF's China: Blind men and the elephant).

This chart from Lukas Daalder tells the story:

Sometimes a picture is worth more than a thousand words. Note the rightmost bars, where the top 10% gets over 100% of the gains while the bottom 90% loses ground.

In China, it is truly glorious to be rich.