China's market intervention could derail liberalisation
Chinese policymakers have continued to intervene in the domestic equity market, but this has failed to stop the plunge and observers now fear China faces a credibility crisis.
Chinese insurance companies are just the latest institutional investor group being impelled to lift their investments in mainland stocks.
This is part of the government’s all-guns-blazing move to prevent the market falling, supposedly in the interests of social stability.
But the unprecedented China stock market intervention by government and regulators failed to prevent the CSI300 index dropping a further 6.75% on Wednesday.
The market has now seen a 31% correction since June…
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