Is this article an egg that pretends to be a chicken, or a chicken that pretends to be an egg?
Will China's Surprise Stimulus Work?
The best week in 16 years for China's stock market was built on hope. Worse, it was built on hope for more state intervention, one of the reasons its economy is in such trouble to start with.Start with the hope. China went for a triple boost last week: cuts to interest rates and other easing, loans to investors and to companies to buy back their stock, and a promise of something "fiscal" in yet-to-be-defined size.Investors loved the idea of central bank support for share buying, not surprisingly. No need to rely on the "national team" of state-directed buyers that stepped in after the 2015 bubble popped if the central bank will support prices directly.But it was the politburo's use of the word "fiscal," and its surprise decision to focus its September meeting on the economy, that really fired up the hopes. If China starts doling out trillion-yuan stimulus here and there, could it get the economy out of its housing-induced slowdown?Clearly investor sentiment changed. It isn't obvious t
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