China’s Bold Stock-Market Rescue Plan Leaves Investors Skeptical
- Equity benchmarks post rare rally as authorities mull measures
- Traders say economic recovery needed for sustained rally
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China’s boldest plan yet to stem the current stock market rout is facing a wall of skepticism as disillusioned investors say any rebound will prove fleeting without a fundamental fix for its ailing economy.
A rare mix of positive news including a stabilization fund in the works and Premier Li Qiang’s order to calm markets sent equity benchmarks rallying on Tuesday. However, China’s history of botched market rescue efforts, the grim state of its economy, and uncertainties over Beijing’s long-term policy roadmap are keeping investors skeptical about the sustainability of these gains.