China Bans Finance Writers From Weibo Over Comments as Stocks Sink

The Business Press – June 27, 2023 at 03:45PM

China’s recent ban of a prominent finance writer and two of his associates over negative comments regarding the country’s stock market and unemployment rate has sparked increased concern among foreign investors, particularly about access to independent information on Chinese companies and economy at a time when investing outlook is deteriorating.

Wu Xiaobo, one of China’s most influential finance writers, regularly writes for Caixin Global and has published best-selling books on Tencent Holdings Ltd. and China’s economic transformation.

China’s financial markets are deteriorating with the CSI 300 Index of stocks having slumped almost 4% in the past four trading sessions and the Yuan having tumbled as much as 0.9% against the dollar to a seven-month low on Monday as trading resumed following a holiday.

China has taken extreme measures in the past to shore up sentiment in the stock market. In 2021, China waged a two-month campaign to crack down on commercial platforms and social media accounts that posted finance-related information deemed harmful to the economy.

The restrictions on finance writers highlights China’s crackdown on private enterprise and weakening economic growth which has led to surging youth unemployment and weakened consumer confidence, already battered by years of covid zero policies.