The authors found that in the short run, hedge fund interventions produced a 6 percent rise in stock prices.
The problem with stock market interventions, as argued here this week, is that once you have started, it is hard to stop.
Botched stock exchange interventions and a sudden currency devaluation in August have rattled confidence in the country's leadership, whose legitimacy rests on maintaining an aura of economic infallibility.
To get to the root of its financial problems, the world does not require capital controls in Malaysia, stock market interventions in Hong Kong, lower interest rates in Japan, bailouts of entire countries and of hedge funds.
The country's growth model is bogged down by structural tensions -- recently manifested as abrupt exchange rate lurches, worrying capital outflows and ham-handed stock market interventions.
When you look at the stock market intervention, when you look at the FX botch as I would call it a couple of weeks ago, and then you look at the Tianjin blasts, you see a government that is most certainly not in control.
China had halted its stock-market intervention in the first two days of this week as policy makers debated the merits of an unprecedented rescue, according to people familiar with the situation.
The model evaluates the stock and flow interventions that Irish healthcare executives have proposed to address the problem of delayed discharges, and ultimately reduce costs.
"As the [yuan] exchange rates calm after recent interventions, stocks are likely to stabilise, and can even stage a technical reprieve in the near term," Hao Hong, managing director of research at BOCOM International, said.
Moreover, there's the threat of activist shareholder intervention, stock manipulation from hedge funds and the possibility of hostile takeover.
