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comment by cgod
cgod  ·  2179 days ago  ·  link  ·    ·  parent  ·  post: China curbs IPOs, enlists brokers in all-out bid to end market rout

Pushing money into the market to save it seems like madness to me.

Companies need to valued based on what they produce or upon the future expectations of their production. Maybe this is an intervention that can help lead to a softer landing but it looks like a panic. In the long term it's probably an adjustment that Chinese companies need but it's happening in a very dangerous way.

mk  ·  2179 days ago  ·  link  ·  

I agree. These desperate actions might indicate a more desperate situation.

From the Chinese people I know, and from my experiences over there, I get the sense that things could be far worse than what is widely assumed. The official economic data is heavily manipulated, if not fabricated at times, and estimates of their debt are huge.

Servicing debt is sapping investment, and the market was the only place to get returns that outpaced very high interest rates on debt. I think the market was working as a crowd sourced bailout.