That's because all the money has gone to corrupt Communist officials' personal pockets. Witness how Li Peng family has converted the whole electricity industry asset to its own ownership, Jiang Zemin's sons having a free hand in China's telecommunications industry, and Zhu Rongji's sons in the finance sector.
Meanwhile, Beijing is officially running in reds (it has been on deficit for ages now).
These information is easily obtained from Chinese-language media. It's just because you Westerners don't have access to it. ;)
And that's why we're reduced to reading between the lines of what news we do see. :)
Much thanks, and please do forward the Chinese news our way . . . or suggested links would work!
Regards from Tejas (Texas)