Markets are slowly coming around to the MB view that no rescue is imminent in China. There are no signals for it. On the contrary:
At Tuesday’s meeting of the Communist Party’s Central Committee for Financial and Economic Affairs, the government detailed new strategies to target the upper echelons. Officials vowed to “strengthen the regulation and adjustment of high income, protect legal income, reasonably adjust excessive income, and encourage high-income groups and enterprises to give back to society more,” according to a summary of the meeting published by state media Xinhua.
At the same time, officials also pledged to expand the size of the middle-income group, grow the earnings for low-income group and prohibit illicit income to promote social fairness and justice. It also reaffirmed Deng Xiaoping’s famous words, to “let some people get rich first,” adding that an environment will be created where more people have the opportunity to become wealthy.
