Chinese propaganda authorities have told business media to tone down their reporting to help stabilize the country’s financial markets, reports Simon Rabinovitch of The Financial Times.
Rabinovitch writes, “Last week’s directive is an indication of the concerns in Beijing about the dislocation and growing panic in the country’s markets following the onset of the cash crunch.
“‘First, we must avoid malicious hype. Media should report and explain that our markets are guaranteed to have sufficient liquidity, and that our monetary policy is steady, not tight,’ the directive said, according to a text obtained by the Financial Times.
“‘Second, media must strengthen their positive reporting. They should fully report the positive aspect of our current economic situation, bolstering the market’s confidence,’ it continued. ‘Third, media must positively guide public opinion. They should promptly and accurately explain in a positive manner the measures taken by and information from the central bank.’
“The directive was written early last week when the Chinese stock market lost more than 10 per cent in a day and a half of trading. But it has just begun to spread more widely to the nation’s media outlets. An economics editor with a leading newspaper received it three days ago and a television producer in a large northern city said the message was conveyed to staff at a Monday meeting.”
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