Beijing’s effort to stoke liquidity ahead of a major public holiday bares concerns about defaults and deeper worries about a longer-term economic crisis.
If China allows the yuan to weaken, as it's doing now, that helps manufacturers maximize profits from exports. But a weaker currency makes the cratering stock market even less attractive.
The intervention will cause volatility that ripples into markets from New York to Taipei because the Chinese economy is linked to just about everyone else's.
Foreign investors are wading back into Chinese stocks despite worries that the market's recovery may not last much longer.