Beijing's desperate attempts to control the stock market will end badly

The communist leadership is subsidising speculation as it tries to protect millions of small investors from being wiped out

Nervous about the Chinese stock market? You should be. First, it looks expensive, even after a dip. Second, the authorities in Beijing, by adopting increasingly desperate measures to prop up share prices, are sending an unmistakable message that they fear a crash is a possibility.

The latest official attempt to manipulate the stock market would be laughed out of court if it were attempted in the west. The central bank is shovelling cash towards a state-backed finance company that lends to individuals who would like to make bigger bets on the stock market than they can afford. That's right, in today's communist China, there are subsidies for stock market speculation.