China: don’t make that U-turn

As China’s leaders survey the devastation in their A-share markets, which at one point lost $3.3 trillion in value, they should not be tempted to prop up prices continuously.

As China’s leaders survey the devastation in their A-share markets, which at one point lost $3.3 trillion in value, they should not be tempted to prop up prices continuously as this would only increase distortions in the cost of capital and bad investments.

¬ Haymarket Media Limited. All rights reserved.

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