Hong Kong Monday's market sell-off in China was the worst in many years and wiped nearly half a trillion dollars off the value of the country's biggest companies. Now the Chinese government has to find ways to stem the panic before the coronavirus epidemic makes things even worse.
Beijing already has a blueprint to work with. When the Chinese stock market bubble popped in 2015, sending shares into an even deeper tailspin, the government stepped in with a rescue plan. Using a state-owned financing company and its sovereign wealth fund, China spent more than 1.2 trillion yuan buying shares to shore up prices. Chinese stocks plunged 8% as coronavirus fears took hold. It's the worst day in years This time, the country may have to do the same.
We should cooperate with China.