China’s stock market has long been more volatile than Beijing would like, a problem that has taken on greater urgency as the government tries to shift growth away from property and debt and toward technology and innovation. Equities are increasingly expected to help fund companies, support household balance sheets and reinforce confidence at a time of intensifying economic pressure and strategic rivalry with the US.
That helps explain why authorities, amid a strong January rally that stirred fears of speculative excess, leaned on a state-backed “national team” to influence trading — a reminder of how closely share prices are intertwined with China’s broader economic and political objectives.
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