China market rescue creates moral hazard, says JPM

The multi-pronged intervention being imposed on China's fragile stock market will risk creating a moral hazard for investors, says JP Morgan. The central bank and regulators have launched an array of bazookas to defend the market, with brokerages already having pledged to not sell shares until the Shanghai market has reached 4,500 points (the Shanghai composite index is currently hovering around the 3,775 level). This level of intervention and overt influence on the market is ma…