The CCP Tightens Control Over Economists’ Speech; Netizens Respond: "Silencing Those Who Raise Questions"

Photo caption: Recently released May financial data once again confirms the grim state of China's economy. (Photo by China Photos/Getty Images)

[People News] The Chinese Communist Party (CCP) continues to suppress negative commentary on the economy. Securities regulatory authorities have instructed brokerages to strengthen the management of public statements, particularly those made by chief economists and brokerage analysts. The directive stipulates that individuals causing significant negative impacts should face strict punishment, including dismissal.

According to a report by Caixin News Agency, the China Securities Association recently issued a notice within the industry. It outlined six areas to enhance self-regulation of chief economists within securities firms, including responsibility for management, appointment standards, pre-approval of external statements, and reputation risk management. The notice emphasized that securities firms must ensure their chief economists value the reputation of the industry and themselves. Those who repeatedly cause reputation risk events due to “inappropriate remarks” within a specified period or create serious negative impacts should face strict penalties, up to dismissal.

The notice further stated that chief economists should adhere to principles of independence, objectivity, fairness, prudence, professionalism, and integrity. They are responsible for making statements that align with “correctly understanding the Party and the state’s major policies.” The notice called for economists to actively contribute to interpreting and promoting the Party and the nation’s guidelines and policies, guiding market expectations rationally, and boosting investor confidence.

"Don't Harbor Illusions About Testing Regulatory Boundaries"

Earlier, Caixin News Agency reported that securities regulatory commissions in various regions have recently issued supervisory directives aimed at strengthening the management of public statements, particularly those made by chief economists, brokerage analysts, and fund managers.

One brokerage research institute circulated an internal notice requiring analysts to rigorously adhere to professional standards and ensure their conduct aligns with established norms. The notice emphasized that "research reports are the sole standard for expressing opinions" and warned against making provocative remarks merely to attract attention or clients or to align with trending topics. It added, "Do not harbor illusions about testing regulatory boundaries." Another brokerage explicitly prohibited employees from sharing investigation summaries of listed companies with clients in any form; such documents are to be archived internally or used solely for drafting research reports.

Chinese netizens were quick to grasp the implications of these regulatory measures, wryly commenting, "Silencing those who raise questions is indeed an effective way to solve problems" and "Spreading the positive energy of China's economy." Some humorously asked, "Do deputy chief economists fall under these restrictions too?"

Fu Peng and Gao Shanwen's Remarks Spark Heated Discussion

Economists Fu Peng and Gao Shanwen recently gave internal investment lectures discussing economic issues, which stirred widespread reactions. This led to their social media accounts being suspended. Fu Peng’s accounts were later reinstated, and he posted on Weibo about skiing in Changbai Mountain, describing it as "supporting the ice and snow economy." However, Gao Shanwen’s WeChat account remained restricted, making it impossible to follow or view his posts.

Fu Peng, chief economist at Northeast Securities, stated that China's current economic stimulus measures are no longer as effective as they were in 2008, due to insufficient effective demand and the decline of the middle class. He also warned that avoiding candid economic discussions out of fear of being labeled unpatriotic could lead to flawed policies.

Gao Shanwen, chief economist at Guotou Securities, remarked that China's economic growth rate over the past three years of the pandemic had been overestimated by 10%. Based on consumption growth data, he observed a peculiar social phenomenon: "vibrant elderly, lifeless youth, and disheartened middle-aged individuals." He added that many young people struggle with employment or feel disillusioned with their jobs, leading them to "live frugally, turning off the lights to eat noodles."

(Adapted from Radio Free Asia)