As Global Stocks Sink, China Shows Volatile Path to Recovery
- Stock prices have recovered while volatility remains elevated
- Beijing’s policy response has encouraged excessive risk-taking
Women chat while walking their dogs in Beijing on Feb. 25.
Photographer: Kevin Frayer/Getty ImagesThis article is for subscribers only.
The six-day plunge in global stocks has caught everyone from hedge fund managers to mom-and-pop investors off guard.
Those trying to navigate the turbulence could do worse than look to China. The nation’s CSI 300 Index suffered a similarly rapid repricing of risks tied to the coronavirus outbreak almost exactly a month ago, plunging nearly 8% in the worst single-day wipeout for Chinese equity values on record.