China Tries to Revive Stock Market. Why the Gains May Not Last.

Chinese officials pulled out rarely used and more aggressive measures to tackle wounded confidence in its struggling economy on Monday. While stocks are getting a boost, it won’t last unless policy makers do still much more.

Beijing is cutting the duty on stock purchases by 0.05 percentage point from 0.1% and cutting the minimum margin ratio for financing to buy stocks from 100% to 80%. Analysts at Gavekal Dragonomics described the measures as “relatively aggressive tools, suggesting officials are concerned about recent weakness in capital markets,” but noted the reaction has been more tepid than in the past.

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