Wait before you applaud the CSRC’s climbdown
The decision to scrap the index circuit breaker looks to be a return to pragmatism, but more is needed to convince investors of the “decisiveness” of market forces.
The China Securities and Regulatory Commission’s index circuit-breaker lasted four days. On Thursday night, chairman Xiao Gang threw in the towel and abolished the measure.
Is this a reflection of pragmatism or ideology? Is this the leadership accepting that it cannot control markets or a tactical retreat in preparation of a new assault to retake finance’s commanding heights?
China’s reform process, stretching back to the Deng Xiaoping days, has been guided by pragmatism. This h…
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