dan maertens's List: Exchange

• But the best and brightest returnees, known in China as "sea turtles", had already left for the private sector, disillusioned and disappointed
• He said the group was sent for special training at Jinggangshan, a former revolutionary base used by Mao Zedong during the Chinese civil war.

• That led, he said, to misguided, counter-productive policies like the crackdown on derivatives and "malicious" short-selling that some say only accelerated the selloff.

  "It's not that they aren't smart," said an executive at a major fund who communicates regularly with the CSRC. "The difference is they don't have financial expertise."
• It's also criticized for botching reform of the IPO market. It re-opened the market in early 2014 after a year's suspension, but under new pricing guidelines that inadvertently made IPOs a one-way bet that sucked funds from the wider market. After a surge in summer IPOs was partly blamed for setting off the crash, the CSRC suspended them again, indefinitely.

• CATALOG OF FAILURES

  Such failures have hammered government's credibility, not least with investors who trusted Beijing to rescue the market in July and bought back in.
• Analysts were not surprised when global stock index compiler MSCI delayed including Chinese shares in its benchmark emerging markets index, a move that might have brought billions of foreign dollars to China's markets.

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