3. Putting a floor under the stockmarket
The ability to buy and sell shares was seen as an example of China’s growing financial maturity. But when the Shanghai Composite index fell by 30% in a month earlier this year, the government stepped in. The central bank supported share buying, a state-backed wealth fund bought up stocks and fund managers were prevailed on not to sell until the market had recovered. Far from restoring calm, the moves suggested Beijing was afraid of a damaging crash.
