The only way out of a market crisis is to fix the market

“We do not expect the government to provide any direct support to Evergrande,” said the S&P credit analysts in a Monday report. “We believe Beijing would only be compelled to step in if there is a far-reaching contagion causing multiple major developers to fail and posing systemic risks to the economy.”

NBC

China Likely Won’t Bail Out Evergrande Directly Unless There’s ‘Far-Reaching Contagion,’ S&P Says

Fears over a potential contagion from embattled developer China Evergrande Group dragged down the Hang Seng index in Hong Kong by more than 3% on Monday.

China’s retreat to socialism

The get-out-of jail card for the Party had always been the phrase “with Chinese characteristics”.

The concept of socialism – “with Chinese characteristics” – allowed the government massive philosophical leeway to run a society which, in many ways, was not very socialist at all.

General Secretary Xi Jinping appears to have decided that this is no longer acceptable.

The Chinese government, under his leadership, has started putting the Communist back in the Communist Party, at least to some extent.