Thursday’s “rebound” in Chinese shares means nothing. Prohibiting selling, forcing buying, and halting half of the market has an effect. It might also be possible to prop up an exchange consisting only of wind-up toys, strobe lights and hand puppets. What matters is not fiddled prices but how the real economy is affected — and whether it continues to benefit from reform.

The Chinese authorities know that reform, not paper wealth, is the route to real prosperity. Take just one industry: healthcare. China has already deregulated drug prices to spur competition. But, it can push harder on reducing healthcare costs. It still needs to address corruption in that market.

Outdated industries need competition from new entrants. In banking, authorities have granted licences to new companies associated with Tencent and Alibaba, the e-commerce groups. New entrants have been allowed into credit assessment, too. This will shake up the incumbent banks — as will interest-rate liberalisation.