"The market can remain irrational longer than you can remain solvent"
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Why Beijing cannot let its bull market die
It promises to be another fraught week for Chinese shares after Beijing intensified efforts over the weekend to try to shore up confidence with a frenzy of new support measures. In a little over three weeks, roughly $2.8 trillion has been wiped off Chinese shares. Rather than calming nerves, however, Beijing’s actions have not only been mostly ineffective, but they’ve also focused attention on why China is so fearful of an equity correction. The latest salvos to boost the market came in the form of a new stock-stabilization fund, a moratorium on new issues and a liquidity pledge from the central bank. According ... (full story)