China’s approach towards capital markets reform – sticking to a deliberate pace – has often infuriated market participants. From the liberalization of bond markets to the granting of licences for Sino-foreign securities joint ventures, Beijing has developed a model of piloting measures in a controlled environment before gradually broadening their reach once the implications are understood. This can make for agonizing waits for those who wish to make money fast from the world’s most promising market but it also reveals an intelligent attitude towards reform that is often not given sufficient credit.
Take the late March announcement that Beijing would allow stock...
