I've heard fairly similar things from my mother.
Her side of the family was quite rich before the whole Cultural Revolution thing, something like her grandfather being ridiculously wealthy (land)lord with the whole multiple-wives thing, even. The commies ended all of that (for better or for worse, I guess). Story goes something like, after the whole take-people's-**** thing happened, and before my mother was born, my grandparents on my mother's side and my aunt would share a bed, with my aunt in the middle, since she was a kid back then, thus shorter, and could actually use the middle portion of the only blanket they were left with because it had a massive hole burned into it. Apparently, their idea of communisim/equality was that the more you had before the less you had after.
Looks like they recovered pretty well though - grandfather on mothers side put things back together in HK and started up a pretty successful toy manufacturing company - made barbies for mattel for the longest time until it just wasn't profitable anymore due to outsourcing to mainland china, so he closed/sold the factory/retired (less than 10 years ago, I would like to say, but I'm no good at keeping track of time). I doubt anyone's ever getting the stuff they took back then though, China still is technically "communist", heh.