Behind China’s Stocks Bailout: A Need to Salvage New Economy
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Who to bail out? And who to let fail? Those are questions policy makers round the world have faced repeatedly in recent years.
In China, the leadership’s all-guns-blazing policy response to a stock-market correction shows how its priorities have changed in the campaign to rebalance the world’s No. 2 economy. While rust-belt industries are being allowed to wind down in China’s northeast, officials are micro-managing stock listings and tapping the central bank to arrest a slide in equities.