China’s well-intended reforms are often compromised by political wrangling and broader economic goals, so when the securities regulator announced new policies to strengthen the languishing equities market there are reasons to be wary.
The ultimate goal of the new rules is to let the vast majority of investors share the success of fast-growing enterprises and the country’s booming economy as a whole. Sadly, that is likely to be challenged by China’s deep-rooted structural problems, which tend to mean that profits flow almost exclusively to the most powerful individuals.
The China Securities Regulatory Commission CSRC and the country’s two exchanges announced plans last week to cut transaction costs...
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