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Zhou Channels Greenspan Put With Easing After China Stocks Slump

Say hello to the “Zhou Put.”

After the biggest two-week plunge in China’s stock market since December 1996, People’s Bank of China Governor Zhou Xiaochuan cut interest rates to a record low. The move is reminiscent of a strategy pursued by former U.S. Federal Reserve Chairman Alan Greenspan, who lowered rates after market meltdowns in what became known as the “Greenspan Put.”