China Stock Rebound Leaves Market Divided on Limits to Crackdown
- Benchmark CSI Index pulls back from brink of a bear market
- Toughened policy stance expected to pressure corporate debt
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Strategists were split on efforts by Beijing to calm China’s volatile financial markets, cautioning on the robustness of Thursday’s equity rebound while staying positive on the nation’s government bonds. The yuan was expected to remain under pressure.
A deepening selloff in Chinese stocks spread to global bond and currency markets this week after Beijing’s months-long regulatory onslaught on private enterprise intensified. The moves reversed somewhat Thursday after authorities sought to calm fears that a crackdown on the education industry will spill into other industries.