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Opinion

Do not mistake China's stock rally for a safe haven

Beijing is pumping stimulus into unreformed economy

| China
An officer takes body temperature measurement inside the Shanghai Stock Exchange on Feb. 28: the trajectory of China's coronavirus challenge is impossible to predict.   © Reuters

China's stock market certainly seems to be having a grand coronavirus crisis. As bourses from Tokyo to New York yo-yo wildly, mainland shares are on a tear, up 10% in just the last month.

This raises almost too many questions to list. Did the mysterious illness quaking global markets not emanate from Wuhan? Is it not true that 2020 is probably a lost year for supply chains, business confidence and Chinese demand? Can investors trust claims that China is winning the battle against new COVID-19 cases?

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