In Beijing
In China,
"common prosperity"
, President Xi Jinping's new slogan, is giving the private sector a cold sweat.
At a meeting of the Central Committee for Financial and Economic Affairs of the Party (CCFEA) on August 17, the head of state promised to
"adjust excessive income"
so as to create a structure for the redistribution of wealth
"in olive shape ”
.
The Chinese number one also called on the wealthy and businesses to
"give back more to society"
.
In fear that the rich could become the target of another turn of the hand from Beijing, the shares of luxury groups LVMH and Kering fell around 10% the week following the Chinese leader's announcement.
Burberry and Richemont prices also eroded by 6%.
A similar fall was recorded by car manufacturers Porsche and Ferrari.
Read also
Chinese billionaires have never gotten so rich
Zhang Weimin, professor of economics at Peking University, worries about excessive state intervention and erosion of the economy
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