Li Xunlei: bull market boosting consumption is bearly grounded

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In mainland financial discourse, there’s a widely shared but largely untested belief that a rising stock market can stimulate consumption and help boost domestic demand. The logic is simple: rising stock prices fatten investor portfolios, leading to higher consumer spending, which in turn could reinvigorate economic recovery. This idea has even made its way into official policy. For example, China’s recent planto “vigorously boost consumption” suggested measures such as “stabilising the stock market.” However, this optimistic view faces a sharp critique from Li Xunlei, Chief Economist at Zhongtai Financial International Limited. Li has worked extensively at other Chinese securities banks, including Junan Securities, Guotai Junan Securities, and Haitong Securities. He is one of the most renowned chief economists among major domestic securities firms in China. Li points to the glaring wealth inequality in China’s stock market, where 80% of retail investors on the Shanghai S ………………………………