Well, everything in non-democratic countries, except (part of) organised crime, exist with the approval and in service of the state. So formal ownership doesn't matter there (this is why Chinese stock market is a joke).

I don't think anyone assumed it to be any different. This is the case in every non-democratic country and this is exactly why capitalism is inseparable with democracy (because there won't be capital when there is no system that ensures that it won't be arbitrarily taken from you, with you thrown into "re-education" camp). Similarly, socialism is inseparable with authoritarianism because give people real voting rights and they will vote socialism out. Hybrid regimes that have been attempted, quickly flipped onto one or the other side - democratic capitalism, or authoritarian socialism - because they are unsustainable and can only be maintained for some time with careful management.