Chinese authorities have been cracking down on online content amid persistent worries about slowing growth and a pessimistic market outlook.
Online content in China is once again under scrutiny amid challenges faced by the country’s economy and financial markets.
The Cyberspace Administration of China – the country’s internet watchdog – has shuttered 373 accounts on internet platforms, according to a statement, for reasons including fabrication and spreading of rumors related to fiscal and economic policies. The regulator claims that this caused an impact on stock markets from which the accountholders profited.
Prominent Writer
On top of government moves, social media companies themselves have also played an active role in scrutinizing online content. One of the accounts that have been notably censored is owned by Wu Xiaobo, a highly influential writer about finance with a best-selling book published in China and around 4.7 million followers on the social media platform Weibo.
Although it is not clear which part of Wu’s social media activities led to his account’s suspension, a statement by Weibo highlighted that he, alongside two other users, had published content related to China’s unemployment rate, securities market, and current economic policies.
Goldman Report
In addition to shutting down accounts, Chinese authorities are also reportedly encouraging some to directly challenge negative market content.
The National Administration of Financial Regulation, for example, communicated with several of China’s largest banks, to respond to a recent bearish research report by Goldman Sachs, according to a «Bloomberg» report citing unnamed sources, though no specific guidance was provided.
The report was published on July 4 by Goldman analysts, led by ex-Chinese banking regulator Shuo Yang. It highlights the risk of bank exposure to local government debt as well as potential losses at lenders, including ICBC, that could weaken earnings growth and affect dividend payouts.
Previous Crackdowns
China has a history of cracking down on negative online content, especially when market sentiment is weak.
In June last year, Wu underwent a similar experience after various social media accounts he owned were once again temporarily suspended following critical takes on Beijing’s controversial zero-Covid policy. Ex-Bank of Communications strategist Hong Hao’s social media account was also suspended in mid-2022 following bearish commentary about the zero-Covid policy.
