Cause to cheer, cause to jeer China stock bounce

With a few benchmarks for Chinese stocks up 20% from January lows, a debate is raging between the bulls and bears.

The bulls are betting that Beijing’s rescue efforts so far have been enough to establish a market bottom — and that buying opportunities abound. The bears see more of a “dead cat bounce” after a US$7 trillion rout and continued signs China’s economic cracks are deepening.

Who’s right? That depends on what President Xi Jinping and Premier Li Qiang do next.