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Could a Chinese Crackdown on ‘Excessive Incomes’ Damage Luxury Sales?

Billions of dollars were wiped from the stock market valuations of luxury’s largest companies last week, but investor fear over President Xi Jinping’s calls for wealth redistribution may be overblown.
Customers wait in line to enter a Louis Vuitton shop in Shanghai. Getty Images.
Customers wait in line to enter a Louis Vuitton shop in Shanghai. Getty Images.

Luxury has been booming in China, where there have been scenes of lines snaking around the block outside Chanel and Hermès stores as consumers — still stuck at home — embrace domestic shopping with gusto.

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