Image: The surreptitious bailout by "the national team." Here: renminbi banknotes 100, 50, 20, 10, 5, and 1 yuan (2005 series).
Fraser Howie, co-author of Red Capitalism: The Fragile Financial Foundation of China's Extraordinary Rise, on China's currency war on the U.S.. The Chinese national team basically jumps in and buys what’s needed when the market starts to tank. You’ve got to think that the effect of all this in the market will be quite severe. The emergency purchases constitute a free-market move of buying into private companies. . . . It’ll be at least another month before we can have a decent picture of this; perhaps a longer and deeper malaise.