This will be a make-or-break week for the Chinese stock market, after officials rolled out an unprecedented series of steps this weekend to prevent a stock market crash that would hurt the world’s second-largest economy.
1. What has the Chinese stock market done in the last 3 weeks?
2. What will the suspension of IPOs do for the market in the near term?
3. What was the purpose of the surprise interest rate cut by China’s central bank last week?
Sweeney, P. and S. Shen. (2015).China rolls out emergency measures to prevent stock market crash, Reuters.com, July 5 (Retrievable online at http://www.reuters.com/article/2015/07/05/us-china-markets-outlook-idUSKCN0PF0DH20150705)