China's Bull Market Will Be Wild No Matter What Beijing Says
- Mixed signals generate small caps’ biggest swings since 2016
- Leverage, turnover are starting to cool as stock rally slows
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How far will China’s leaders go to prevent an equity bubble from forming? It’s becoming a key question for investors as mixed signals produce the wildest market in years.
Traders are hanging on every word out of Beijing for clues on how the government may want to manage this year’s world-beating rally. The new securities regulator chairman -- who has played a leading role in stoking risk appetite -- just downplayed the significance of last week’s rating cut, calling it “very normal” even though the market’s reaction showed otherwise. State-owned media chimed in, saying there’s no need to be concerned over margin trading. That’s after brokerages were instructed to minimize those very risks.