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China's Magic Tricks Can't Save Its Stock Market
Chinese policy makers seem to have exhausted whatever magical powers they had been using to keep their economy aloft. Chinese stocks have been plunging even as Beijing has used every trick it knows to support the market. The truth is that the plunge in Chinese stocks was long overdue. China’s longest-ever bull market was government-driven, fueled by central bank liquidity and a public-relations bonanza. The question now is whether Beijing's policy apparatus has lost its ability to impose its will on stock prices. And there's good reason to think it has. Stocks slid 3.3 percent Monday even after an aggressive ... (full story)