Scalpel in hand, Chinese Premier Li stirs reform hopes

Investors getting stung by China’s worst financial market rout in years should find solace in the fact that the government, in particular Premier Li Keqiang, is willing to play hardball to force through much-needed policy change.

The central bank’s refusal to intervene last week to ease an unprecedented cash crunch, where interest rates in the interbank market shot as high as 30 per cent, was the clearest sign yet that China’s new leaders are willing to stomach economic pain for the long-term good.

via Business feed http://www.scmp.com/business/economy/article/1269409/scalpel-hand-chinese-premier-li-stirs-reform-hopes