Xi Jinping begs to differ!
Not Jim Chanos, who thinks the real collapse is still to come. Not Carson Block, who says the Chinese still haven't quite come to grips with this whole capitalism thing. And not the Journal’sIntelligent Investor:
Governments have been trying—and failing—to control markets for centuries. If the Chinese government succeeds, it will be the exception to that rule. If it fails, the results could be dire….By leaving regulations on margin debt loose, the Chinese government is encouraging further speculation in stocks that may still be overpriced….And, if that’s the case, this round of interventions may only end up necessitating more.
Interventions like maybe introducing a few hedge fund managers to the rigors of the Chinese judicial system….
Mr. Chanos and fellow China bears are increasingly in the spotlight, not only because of the potential profits they might claim but also because they are now in the cross hairs of the Chinese government. On Thursday, a report by the state-run Xinhua News Agency said Chinese police were investigating “malicious short selling.”
China Stocks Make Biggest Daily Gain in Six Years [WSJ]
James Chanos: More Pain to Come in China [WSJ]
Carson Block Blames China’s Government for Stock Market Crash [WSJ MoneyBeat blog]
Memo to China: Your Market Moves Are Doomed to Fail [WSJ MoneyBeat blog]