Meanwhile, China legalises short selling:
China’s action contrasts with regulators in the U.S., Europe and Australia that have banned short selling in the past week to shore up financial shares battered by the global credit squeeze. China’s government is betting the changes will boost trading without spurring further declines after state share buybacks helped the CSI 300 Index rebound from a two-year low.
That is partly it. But mostly what China’s government seems to me to have been doing for many years now is tackling every domestic economic problem it has with a free market solution, and betting that even if such measures do not solve the immediate problem, they help in the longer run.