(Bloomberg) The value of China’s stock market has never been this far behind that of the US, as the losses continue to pile up in a seemingly relentless equity rout. Most Read from BloombergFlorida Governor DeSantis Drops Out of 2024 Race, Endorses TrumpHong Kong Stocks at 36% Discount Show True Depth of China GloomMorgan Stanley, JPMorgan Say Buy the Dip After Treasury RoutNever Trumpers Brace for New Hampshire ShutoutBoeing Faces More Pressure as United CEO Vents FrustrationsThe market capi
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Such was the case on Tuesday, when the People’s Bank of China withdrew incremental liquidity and an adviser warned obliquely of asset bubbles. The result was the biggest drop in eight months for the Hang Seng Index. State media was quick to calm nerves, with the Securities Times urging investors in a front-page editorial to avoid reading too much into the central bank’s money-market operations.
The benchmark stabilized on Wednesday, losing just 0.3%, even though the PBOC withdrew a greater amount of funds than the prior day. On Thursday, the benchmark fell as much as 1.7% in morning trade as the PBOC withdrew short-term liquidity at the fastest pace in three months.