China is playing a very dangerous game

“Over the weekend, the Chinese government unfurled a series of measures to stop its stock markets’ free-fall the scale of which has never before been seen. It is essentially giving investors a “Xi Jinping put” — meaning, the government is assuring investors it will do what it has to to keep the market aloft.” The government has also assured investors that it will inject 120B Yuan ($19.3B) into the margin trading clearing house and “vowed to make sure the Shanghai Composite hits 4500.” Anne Stevenson-Yang, founder of J Capital Research says that analysts are wrong to compare this action to the US Government’s TARP (troubled asset recovery program) bailout program, as the US was directly saving operating companies… China is vowing to save the index." Read the full article on Quartz (VIEW LINK)