The dual-track system gave birth to the first batch of local tyrants. Specifically, it refers to a group of privileged people who buy and sell through various means under price control and material shortages.
The second group of rich people rely on drain of state owned assets. The most peak period was during the shareholding reform of state-owned enterprises in the last century, when the MBO (manager buyout) model was widely questioned.
The third group of rich people rely on IPOs, especially Internet IPOs. Going public is a machine for making wealth. When a company goes public, a group of rich people get up. Even the entrepreneurial journey of some companies doesn’t really start until after they go public.
The fourth group of wealthy people rely on the privatization of minerals. For example, after the coal privatization reform, coal bosses are rising, and more and more mining accidents occur.
The fifth batch of rich people rely on real estate. The real estate business has become rich, leaving us with rising house prices.
The sixth batch of rich people rely on asset securitization. Elites have gone to the financial industry, which shows its attractiveness.
The seventh batch of rich people rely on industry monopoly. Various monopoly state-owned enterprises are very powerful. There are even some parasitic companies of PetroChina and China Mobile in the stock market. They can go public with only one business!