China’s leaders are flailing as markets drop
The government is not used to being bullied
In recent weeks, China’s economic policymaking has been not just inadequate but a little skittish. On January 23rd draft rules on video games disappeared from the regulator’s website a month after their appearance, as if they had never existed. The regulations, which would have sprinkled games with pop-up warnings against “irrational consumption behaviour”, had triggered a steep sell-off in the shares of tech companies like Tencent.
The following day, Pan Gongsheng, governor of China’s central bank, held an unusual press conference in which he cut reserve requirements for banks by more than expected, and vowed to “strive to stabilise the market”. It was an attempt to reassure investors after the bank had failed to cut interest rates earlier in the month.
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This article appeared in the Finance & economics section of the print edition under the headline "Game changing"
Finance & economics February 3rd 2024
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