Beijing Stabilized the Stock Market, Now What?

Beijing has driven itself into a cul-de-sac with its stock market policy.

Christopher Balding breaks it down in Be Careful What You Wish For. The conclusion:
There is currently no stock market right in China, there is government mandated price level in stocks. While that may stabilize the price level in stocks, as the only real market participant Beijing got its wish but now needs to figure out how to extricate itself from a mess of its own making, and keep the market buoyant. Any hint of public selling will incur enormous losses for Beijing and the state owned banks that bailed out the market. Beijing needs to sell off its purchases but right now it’s the only player in the market forcing it to negotiate with itself.
It doesn't make sense to buy A-shares now unless there's an individual stock trading at a good price, not when the H-share market offers big discounts.

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