The SinoAmerican Cold War took a startling turn yesterday. The big news of the day, disguised by the Wentworth fog, was that China has declared an explicit “Shanghai put”, a free buy on the Chinese stock market, backed by the God King himself, via Bloomie:
President Xi Jinping vowed “unwavering” support for non-state firms over the weekend, the country’s stock exchanges committed to help manage share-pledge risks, and the government released a plan to cut personal income taxes. That follows a rare coordinated effort from top financial officials on Friday to support the battered equity market.
“This rebound is very comforting, a warm current in winter’s frigid waters,” said Weining Chen, a fund manager at Miyuan in Beijing. “The remarks and polices since Friday are seen as an ample dose for now. But there are still expectations that the authorities will not stop here because the economic figures are still not looking optimistic.”
