Understanding China’s Stock Market Intervention

Over the last fortnight, CSIS Freeman Chair in China Studies Deputy Director Scott Kennedy has appeared in numerous radio, print, and television outlets to help observers understand the Chinese government’s intervention to arrest the slide of its stock markets, primarily the Shanghai Composite Index, and the China Securities 500 Index. Since early June the markets have lost considerable value, prompting China’s leaders to take drastic steps to stabilize the markets and boost investor confidence.

Dr. Kennedy, as Director of the Program on Chinese Business and Political Economy, had unique insight to offer on the situation on these platforms:

Scott joined the Diane Rehm Show to discuss China’s stock market crash and its implications for the United States with Dr. Minxin Pei, professor of government at Claremont McKenna College, and Neil Irwin, senior economics correspondent at The New York Times. Listen to there conversation here.

The Los Angeles Times published an op-ed Dr. Kennedy wrote concluding that while China’s market intervention appears to be working for now, “Anyone who thinks China has broken its intervention habit will certainly be proved wrong before long. But if its leaders move steadily toward liberalization, there should be less need for heresy in the first place.”

He also discussed the economic situation on Bloomberg TV with Bloomberg’s Alix Steel and Scarlet Fu on Bloomberg Markets.

He appeared on CCTV America on July 16, 2015, to discuss foreign direct investment in China and its impact on China’s 2015 lst half-year data.

Simon Denyer’s Washington Post story “China’s battered stocks rebound as officials tighten market controls” included a quote from Scott as well, “The intervention comes with some real costs that will not be easy to overcome. The scale and aggressiveness of these measures make a mockery of the leadership’s claim to allow the market to play a ‘decisive role’ in determining the allocation of resources and the direction of the economy.” He was also quoted in Washington Post writing here, here, and here.

And Scott joined our very own CSIS Podcast to discuss the situation with Colm Quinn on July 10. Listen to the audio below or on iTunes.

Readers can see his intitial commentary which kicked off coverage here on CogitAsia and view his full list of CSIS publications here.

Scott Kennedy

Scott Kennedy

Dr. Scott Kennedy is senior adviser and Trustee Chair in Chinese Business and Economics at CSIS.


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