Bailed Out By Beijing: Fiscal Stimulus Hint Catalyzes Big Rally In Chinese Stocks

Last week, it was starting to look like a foregone conclusion that Beijing was set to step in aggressively to support the stock market. Since the summer of 2015 when a vicious unwind in a half-dozen or so backdoor margin lending channels burst the Chinese equity bubble virtually overnight, Beijing has been keen on stepping in to arrest (figuratively and in some cases literally) any persistent weakness. While the measures undertaken in 2015 were draconian in the extreme (e.g., arresting journal