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Did Beijing overreact?

The recent intervention to halt the sharp sell-off in China's stock markets is not likely to convince foreign investors that it is serious about market reforms.

China's stock market is still up over the past 12 months and the only real losses thus far have been by investors who arrived late to the party.

THE sharp sell-off in the Chinese stock markets in the last couple of weeks caused a lot of anxiety and uncertainties in the minds of global investors. The panic selling by domestic investors and a wave of margin calls helped push Shanghai domestic A shares down by 30 per cent or so in the last...