Everything’s Great in China’s Economy. By Decree
An effort by securities regulators to tune out negative opinions is cause for alarm, and unlikely to have the desired effect.
Mind your mouth: Liu Shiyu.
Photographer: Lintao Zhang/Getty Images
Consumers of brokerage research on China’s economy and companies have long known that they need to read between the lines. Securities firms are often circumspect in their judgments to avoid alienating powerful interests that could damage their business.
So it’s curious that the head securities regulator went to the trouble of meeting with more than 30 brokerages and fund firms to admonish them to be careful in what they say. Liu Shiyu, chairman of the China Securities Regulatory Commission, told the firms to take into account the interests of the party and the state when publishing research, Bloomberg News reported Thursday.