Sure, Wall Street. Go ahead. Ride the dragon.
There was a moment of grace on Tuesday for investors, market analysts, and finance's top brass when Beijing announced measures to try to reinvigorate China's croaking economy. Pan Gongsheng, a governor of the People's Bank of China, the country's central bank, announced that 800 billion yuan, or about $114 billion, would be injected into the stock market. Policymakers also said they were discussing raising a fund designed to stabilize stocks and announced rules allowing Chinese banks to keep less money in reserve, freeing up 1 trillion yuan to go out asloans.
They also lowered the People's Bank of China's medium-term lending rate and key interest rates for banks and customers. Homebuyers can also now put less money down on their purchases — an attempt to breathe life into China's moribund property market. The immediate reaction from Wall Street was all-out jubilee.
Since the pandemic, China's leader, Xi Jinping, has done little to stop the bleeding in the country's property market or to get China's ailing consumers to start spending money again. The Shanghai Composite lost nearly a quarter of its value. American companies in China are getting crushed .
Foreign investors are pulling record amounts of money out of the country. This week's announcements sent Wall Street into a state of rapture, hoping that the Chinese Communist Party is now, as in years past, prepared to catch a falling knife. The Golden Dragon index — a collecti.
