Lizzi C. Lee
In late September, China’s stock market, beleaguered by weak economic indicators and a crumbling property sector, experienced an unexpected rally. After previous hesitation over major interventions, Beijing’s stimulus measures sparked a surge in Chinese equities, briefly reigniting optimism. Yet what truly puzzled market observers was Beijing’s newfound approach to managing the market itself.
After allowing the market to lose trillions of dollars in value, with only limited state fund interventions when key psychological benchmarks were breached, Beijing abruptly shifted to a full-scale rescue. This involved forward guidance through press conferences, policy adjustments, and media engagements to restore market confidence. For the first time, stock market performance appeared to be a direct policy target—marking a sharp departure from President Xi Jinping’s usual stance of keeping financial markets at arm’s length.
No comments:
Post a Comment