, Columnist
China’s Market Rescuers Are Saving the Wrong Targets
The investor group is sticking to its 2015 playbook by buying shares of big state-owned enterprises. That’s not where the trouble is.
Fire, ready, aim.
Photographer: Donald Miralle/Getty Images
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From depression to euphoria: China’s stock markets rallied for a second day after Beijing’s top economic regulators sought to bolster confidence on Friday.
Investors should restrain their enthusiasm. Simply telling us that valuations are near historical lows, or vowing support for the private sector, isn’t going to fix one of the world’s worst-performing stock markets this year — especially at a time when economic growth is slowing and China Inc.’s profits are being squeezed.