Mises Wire

Props for the Chinese Stock Market

Chinese Stock Market Bubble

The Chinese government has done the following to prop up its stock markets:

1.    Cut interest rates several times

2.    Cut reserve requirements

3.    Prevents large stock owners of a company from selling their share for 6 months

4.    Induced stock brokers to buy $19 billion of shares

5.    Imposed restrictions of short selling

6.    Stopped new issues of stocks and IPOs

7.    Directed pension funds to buy more shares of stock

8.    Reduced transaction fees on stock purchases

9.    Halted trading on over 1300 companies listed on exchanges

10.  Trading is halted whenever a stock loses 10% of its price

Any additions or corrections?

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