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China's Volatile Stock Market and Its Implications
By Sara Hsu, State University of New York at New Paltz.
China's stock market reached a frenzied peak and a dismal low this summer, as an asset price bubble months in the making suddenly burst. In response, the government rushed to stem the freefall by cracking down on short selling, injecting funds into the market via large brokerages, altering margin lending rules, and permitting trading suspensions on some stocks.
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