Beijing Is Chinese Stocks' Benefactor
- By Brian Schwarz
- Published August 18, 2009
Brian Schwarz
I'm an American who has lived in China since 2000. I teach MBA courses in HRM and international business at Shanghai Jiao Tong University. I also work as a freelance journalist.
The Shanghai stock market is down big again today. But don't worry too much says the WSJ:
SHANGHAI -- China's most-watched share index has tumbled 16% over the past two weeks, but analysts say this doesn't mean the party is over, largely because Beijing probably doesn't want it to be.
The stock market is expected to benefit from still-flush liquidity, a likely improvement -- albeit at potentially a slower pace -- in economic readings, and possible market-supportive moves from Beijing. With the 60th anniversary of the Chinese Communist Party's rule on Oct. 1, officials will likely want the stock market to be in good shape.
