Regulators, like govts, invariably re-act near the end of a trend. Here's yet another example.
Just like NZ regulators re-acted to stem the housing bubble near its peak in Auckland, APRA will force Oz banks to raise more capital over coming years - after our housing bubble will be deflating.
We saw how desperately Chinese regulators became to try to prop up China's stock bubble, after the initial selloff. The resultant bounce is due more to a market that became technically oversold on extreme negative sentiment that anything their regulators tried. In doing so China's so-called 'free' markets are losing all credibility with international investors.
That's why govt re-actions to market events ultimately cause more harm than good from their market interventions.
