Bailout or bust

Bailout and rescue attempts are fine, but they ultimately mean little if they fail to, well, actually bail out or rescue anything. Beijing’s famous stimulus package is the grandaddy of all domestic bailouts, of course, but it’s not the only thing the government has been doing to try to boost the economy. Interest rate cuts have been another favorite tool, but they don’t seem to be working all that well: despite a new rate cut, investors in Shanghai remain skittish. They’re not the only ones in a selling mood: US-based real estate investment trust ProLogis has decided to sell its China operations to Singapore-owned GIC Real Estate. More bad news can be found in the dairy industry, where scandal-hit Sanlu has now officially been declared bankrupt, and in the gaming industry, where the Venetian Macau has laid off yet more workers. It remains to be see whether a new bailout targeting private airline conglomerate HNA Group, will save China’s small airlines from the worst of the downturn. If not, there may still be hope for defense contractors: China is considering making its own aircraft carriers to boost its naval power.