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It's in Chinese governments interest to see that the mass population's wealth are not wiped out, especially when they have encouraged people to put money in the
by curiousjorge 11y ago
It's in Chinese governments interest to see that the mass population's wealth are not wiped out, especially when they have encouraged people to put money in the stock market, even on margins.
Already before the rally of the SSE, China was not in a healthy state with large amount of debt.
Now they are printing more money, taking on more debts to prop up the stock market and they've shown everyone that they are powerless.
In the meantime,I speculate that Chinese government will go all out to prevent the SSE from sliding any further. It's government continuity is indirectly threatened. And this is why I can't speculate on China anymore, it's exactly like a casino where you are playing against the house, and they won't let you leave with any large profits and accuse you of cheating.