https://fortune.com/2020/03/06/china-coronavirus-market-meltdown-bubble/China worried that coronavirus would cause a market meltdown. Its reaction risks stoking a bubble instead
China’s desire to support its financial markets in the wake of the virus outbreak may have moved the needle too far the other way.
It’s taken a sweeping and coordinated effort from top officials to prevent a downward spiral in Chinese stocks. From early February, the central bank and regulators across the foreign exchange, securities, banking and insurance sectors have deployed a number of measures to ensure sufficient liquidity and reduce borrowing costs for companies. Hints of more to come on the monetary and fiscal side have been equally effective.
