On Tuesday the PBOC reassured the markets about providing liquidity. Stock markets worldwide made a strong comeback from yesterday´s rout. What´s interesting is that, prior to the official announcement, the People’s Daily, official newspaper of the Communist party, called on the authorities to continue an unyielding stance:
“The central bank is not a wet nurse to the stock market. If it saves the stock market, it will in fact be harming it,” the paper wrote.
You can´t get more Austrian than that!