Can China’s Stock Market Be Independent of the Government?
Since the fall of China’s stock market, investors have been very disappointed in the government for not rescuing the market. Some investors complain that when the U.S. stock market fell 10 per cent, the U.S. government invested 200 billion dollars to save the market. However, China’s stock market has fallen nearly 50 per cent, and yet, the Chinese government has taken no action. According to Chinese Finance magazine, “China’s stock market cannot, could not, and should not be saved.” This might be consistent with the ideas of many experts and economists, that is, it is better for the government not to intervene in the market. However, can China’s stock market truly be a market independent of policy and the authority (administrative power)? This is a challenge to the current system. First of all, the major and powerful players of the listed companies in China’s stock market are so-called State-owned businesses. According to the Chinese legislature, the State Council is the ultimate repre
