It’s never too late to correct wrongs: Other views
China Daily, Beijing, editorial: “The securities authorities’ decision on Thursday night to put the ‘circuit breaker’ mechanism on hold — only four days after it was introduced — is commendable. It is never too late to correct wrongs, but lessons have to be learned so that policies of similar significance are devised more carefully. Thursday’s decision was made after trading on the Chinese mainland’s stock market was halted for the second time (last) week, indicating the new stabilizer had failed. ... The introduction of the circuit breaker mechanism, a common practice in many overseas stock markets, is ostensibly meant to create time for investors to calm down in the face of volatile market changes. But the domestic stock markets have quite different regulatory requirements and market conditions.”
Craig Stephen, MarketWatch: “It used to be that investors outside China could ignore the gyrations in that country’s stock market, given that no foreign investors were allowed to buy shares. But that’s clearly not the case anymore. ... One explanation for the severity of the reaction is that it brings to the fore a worry most investors would rather not think about — Beijing is no longer really in control of its equity markets, currency and the world’s second largest economy.”
The Wall Street Journal, editorial: “Some officials want more stimulus and industrial policy, while others realize that structural reform and less government intervention are key to sustainable growth. ... The good news is that a real debate is underway that could lead to more market-oriented policies. But until China’s leaders reach consensus on reform and the slowing economy, the confusion over the country’s direction will sap investor confidence.”
Bruce McCain, Forbes: “China is not the problem. The real worry is that global slowing — and specifically the decline of industrial production in the United States — will drag us into recession. ... Yet when we take a deeper look at the factors that have weighed on U.S. production, we find that the outlook for industrial activity is probably better than most investors fear. ... If global economies can continue to grow, 2016 should be a reasonably solid year for equity investors.”