It’s possible that China is not ready for free markets. The first sign was in the first half of 2015 when regulators let Chinese stocks soar, fueled by hugely speculative investments and a surge in margin trading. Then, after the bubble popped, policymakers cobbled together a haphazard rescue package that ultimately failed to support the market. The currency “devaluation” was an attempt to appease the IMF and also jumpstart the country’s stagnant manufacturing industry. But allowing CNY to drop ...
The People’s Bank of China spat a good amount of lighter fluid on the global equity market rally at the end of a week that saw the launch of a program designed to provide two-way access to mainland and Hong Kong markets. Friday’s cut in official lending rates by the central bank is the first since July 2012 and follows a series of policy interventions aimed at indirectly stimulating its economy. Both European benchmarks and US stock index futures responded with enthusiastic advances to the reduction ...
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