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Megan McArdle

China Hopes to Defy History of Market Bailouts

It sort of worked for J.P. Morgan in 1907. But this is very different.
It's no sure bet.

It's no sure bet.

Source: ChinaFotoPress via Getty Images

China's stock market has had a spot of trouble lately. Perhaps you've heard? You may also know that the Chinese government has intervened heavily to try to prevent a financial panic. And yet, as the Wall Street Journal notes today, the stock market remains well off its peak.

Whether Beijing's policy has "worked" is somewhat subjective; if you think that financial panic was imminent, then maybe it has. But even if you think that the government's policies have prevented a disaster, you still have to ask whether they can actually sustain a recovery.