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John Authers

China Can Avoid a Stocks Crash. Now the Bad News

The government’s current priorities mean equities are unlikely to do anything exciting for a while.

What to make of China's market tumble?

What to make of China's market tumble?

Photographer: STR/AFP/Getty Images

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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.