China Taps Brakes On Insane 2019 Stock Surge
As onshore shares in China surged ~40% in 2019, some analysts began to suspect the rally would become a victim of its own success.
Although ensuring ample liquidity is critical at a time when the fate of the global cycle hinges to a great degree on whether China's economy inflects sustainably for the better, opening the floodgates when domestic equities have already run as far as they have risks a repeat of the 2015 crash, something authorities are keen to a avoid.
Well, on Monday, Chinese sto
I was also interested in the Bloomberg article about more Chinese companies doing rights offerings as the market rose. Unless the government discourages that practice, the stimulus will just produce more common shares instead of higher equity prices.