Sometimes we should cut the Chinese central planners some slack. It’s hard to centrally plan an entire economy, especially the stock market. In essence you have to achieve at least two completely contradictory goals at the same time.
Although officials will never admit this to be true, we can only explain the recent actions of the People’s Bank of China and the securities regulators this way.
One day, they do something encouraging rampant speculation (more liquidity from the central bank), then they do something to rein in speculation (encourage short selling, reduce margin buying).
A record 3.25 million new retail broker accounts were opened in the third week of April alone.
