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Xi’s national team rides again to save swooning tech stocks

State-funded rescues have calmed markets before, but each one raises the stakes — and the risks — of avoiding real reform

by William Pesek July 22, 2026July 23, 2026

China is pumping state money into stocks to stabilize sliding tech shares. Image: X

TOKYO — Chinese stocks just had a remarkable week, with stellar news from startup Moonshot AI delivering a DeepSeek-like jolt to a fragile market. Its new AI model reminded investors how fast China Inc. is closing the technology gap with Silicon Valley.

But as China’s “new economy” grabs the headlines, its “old economy” troubles are grabbing the wrong kind of global attention at a rough moment for Xi Jinping’s Communist Party.

A giant property crisis, near-record youth unemployment, dismal local government finances and weak consumer demand are weighing on markets — and Beijing’s “national team” is back in action.