Closer Look: Gov't Had No Reason to Intervene in Stock Market Turbulence

(Beijing) – Over the past three weeks, the benchmark index for the A-share market has plunged by more than 30 percent, despite government efforts to break the fall.

Questions abound as investors and analysts debate whether and how the government should intervene.

Those advocating a bailout argue that China is nearing a financial crisis if it lets the rout continue, and that the government should learn from the lesson of the United States, which some argue did not act fast enough to prevent the bankruptcy of Lehman Brothers. They also say the government should set up an investment fund, with capital provided by the central bank, to buy stocks until the market rallies again.