Beijing Is Set to Rescue the Market Again: But Is That the Right Thing to Do?
There are much better ways for the government to spend hundreds of billions of dollars than propping up Chinese stocks.
Kang Yi, commissioner of the National Bureau of Statistics, speaks during the State Council Information Office (SCIO) press conference on China's economic performance in 2023. Beijing, China, January 17, 2024. Credit: VCG via Getty Images
Once again, we hear of plans for Beijing to use hundreds of billions of dollars’ worth of state resources to rescue the ailing Chinese stock markets. Although government intervention can play an important role during market panics, this rescue attempt likely is not the right medicine for the current troubles besetting Chinese stocks. The funds could be deployed in a more effective way to create a longer-lasting impact on the economy, and by extension the market.
According to Bloomberg N
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