If you live in Asia, you will hear this refrain about the Chinese stock market again and again: that it is the government casino. The way the casino works is through guanxi, a set of connections to the higher authority and a network of favors, if not bribes. According to locals, Guanxi permeates pretty much every aspect of the Chinese society. And the Chinese stock market, in particular, has proven to be beholden to Guanxi: those with connections and, as a result, in the know about upcoming government moves make a ton of money. The regular folks are pure gamblers, placing their money on the luck of the draw.
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