We have all heard about how Chinese households out save us, they are notorious for their disciplined savings practices. Boasting a household savings rate of between 30 and 40 percent, the Chinese have capital, but because of strict regulations, they have only a few dim options for investing their savings.
Financial regulations in China require its people to invest either in property or domestic stocks. The third legal option is to plunge their money into a savings account. But, with returns coming in lower than the rate of inflation, this practice cannot be seen as an investment.