China Can Avoid a Stocks Crash. Now the Bad News

To get John Authers' newsletter delivered directly to your inbox, sign up here.

Chinese stocks are offering another painful dilemma. Like many other aspects of China’s economy, the government has much influence over the equity market. Unlike other parts of the economy, however, the government doesn't have the power to micro-manage. Its interventions tend to be ham-fisted, giving the domestic market two bubbles this century — in 2007 and 2015 — both of which burst.