Chinese leaders struggle to dispel stock market gloom

BEIJING – China’s leaders are trying to dispel stock market gloom and talk prices back up with promises of tax cuts and a media campaign led by its economic czar.

The market benchmark plummeted 30 per cent from January to mid-October. It has rebounded 5 per cent but is the world’s worst performer this year.

That’s a blow to communist leaders who are trying to shore up economic growth and carry on a tariff war with U.S. President Donald Trump over Beijing’s technology policy.

President Xi Jinping’s government is struggling to talk stock prices back up with promises of tax cuts, more bank lending and a media campaign led by its economy czar.

China’s markets were created to raise money for state industry and prices react more to policy changes than to economic performance.