Blinking in the face of raw capitalism

Beijing has intensified its efforts to steady the country’s turbulent markets but is also denting its reformist credentials.

Beijing intensified its efforts on Wednesday to tranquillise China's A-share markets but its methods have raised question marks over how committed this communist-run country is to subjecting itself to the market disciplines of capitalism.

On its website, the People’s Bank of China said it is “actively assisting” the China Securities Finance Corporation to ensure it has ample liquidity through interbank lending, bond issuance, and collateral finance. CSF, managed by the China Securities Regulatory Commission, is the only official margin lender for brokerages.

The central bank added that it will “closely monitor” the market and continue to support CSF to hold the line against any systemic...

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