Billionaire Princelings Ruin a Chinese Vision – Bloomberg 12-27-12

Salient to Investors:

William Pesek writes:

Woodward-and-Bernstein style tactics are helping to unearth the rot that has taken hold in China – princelings that are reaping outsized benefits from China’s growth, causing inequality levels at pre-Communist levels.

One of modern history’s greatest wealth grabs is delaying the reforms needed – of the Immortals’ dozens of children, just 3 founded or run companies with combined assets equivalent to a fifth of China’s GDP, and over a third hold top positions in state-owned enterprises. Princeling Xi’s family accumulated a fortune estimated at $376 million. The New York Times reported that the family of Premier Wen Jiabao has made billions of dollars during his tenure.

Blocking Google, Facebook and Twitter haven’t silenced the masses, who finding ways to get around the firewall. No industrializing economy has ever avoided a crash, and neither will China.

Read the full article at http://www.bloomberg.com/news/2012-12-27/billionaire-princelings-ruin-a-chinese-vision.html.

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