Cronynomics: China stock market rebound the result of ‘secret’ government intervention

China govt cc

Things just keep getting wackier in The Ultimate Crony Capitalist State.

Hey, why not just have the government come in and buy up the stock market? That ought to do the trick. Nothing could possibly go wrong with that. It’s not like this whole crash was precipitated by central planning and malinvestment or anything.

(From The International Business Times)

The Chinese government is suspected to have secretly intervened in the declining stock market in Shanghai, according to unnamed sources in the country.

Bloomberg reported that people familiar with the matter said the 5.3% increase in the stock market was a result of intervention by China’s communist government, which allegedly bought stocks from big companies on Thursday…

…Bloomberg said the new secret measures were introduced in an effort to stabilise the stock markets before 3 September, when the country will celebrate what officials call “The 70th Anniversary of Victories in the Chinese People’s War of Resistance Against Japanese Aggression and the World Against Fascism”.

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