China has seen the light! The big, red flashing light, from the WSJ:
Chinese authorities are training their sights on a new set of targets: economists, analysts and business reporters with gloomy views on China’s economy.
Securities regulators, media censors and other government officials have issued verbal warnings to commentators whose public remarks on the economy are out of step with the government’s upbeat statements, according to government officials and economic commentators with knowledge of the matter.
Lin Caiyi, chief economist at Guotai Junan Securities Co. who has been outspoken about rising corporate debt, a glut of housing and the weakening Chinese currency, received a warning in recent weeks, these people said. It was her second. The first came from the securities regulator, and the later one, these people said, from her state-owned firm’s compliance department, which instructed her to avoid making “overly bearish” remarks about the economy, particularly the currency.
Pressured by financial regulators bent on stabilizing the market, stock analysts at brokerage firms are becoming wary of issuing critical reports on listed companies. At least one Chinese think tank, meanwhile, was told by propaganda officials not to cast doubt on a planned government program to help state companies reduce debt.
While evidence of the clampdown is anecdotal, it appears widespread. Government departments didn’t respond to requests for comment or declined to. Commentary about the economy and reporting on business, unlike on politics or many social policies, have been relatively unfettered in China in a tacit acknowledgment by officials that a freer flow of information serves economic vitality. “I was told by regulators not to recommend shorting the renminbi,” Ms. Lin told the gathering, “so I’m just going to recommend buying the dollar.”
Pasconomics 101. Attack the Doomsayers. No need to threaten Aussie commentators or institutions. We’re on board!
The smart money will cheer given they’ve a new counter-contrarian sell signal to follow.
