China tells online financial info providers to keep ‘economic order’

Published December 27, 2018
New regulations are part of an apparent crackdown on online content deemed detrimental to the country's financial stability. ─ AP/File
New regulations are part of an apparent crackdown on online content deemed detrimental to the country's financial stability. ─ AP/File

BEIJING: China’s cyber watchdog on Wednesday issued new regulations for domestic financial information providers, in an apparent crackdown on online content deemed detrimental to the country’s financial stability as the economy slows.

Financial information providers are not allowed to distort Chinese fiscal and monetary policies, disturb economic order or to harm the nation’s interests, the Cyberspace Administration of China (CAC) said in a statement on its website.

Service providers being targeted include those involved in financial analysis, financial trading and financial decision-making, but do not include foreign wire services, according to CAC.

The CAC said violators of the regulations, due to take effect on Feb 1, will be “condemned publicly” and “ordered to rectify” their errors. Criminal cases will be brought forward if violations constitute a crime, it added.

The move came as slowing growth for the world’s second-biggest economy has spurred calls from academics and entrepreneurs for more stimulus policies.

Domestic providers of financial information are expanding rapidly, and some institutions that aren’t strict in supervising content are speculating on market risks and publishing sensitive market information and distorting financial regulatory polices, the CAC in a Q&A issued after publication of the regulations.

“(They) have brought an impact on the economic and financial stability, and should be addressed immediately,” said CAC.

Financial information providers are also not allowed to fabricate news or events that could move stock, fund, futures and foreign exchange markets.

In recent years, China has tightened oversight of online content, concerned about the spread of politically “harmful” information, pornography, fake news, and efforts to “defame the nation’s image”.

Online criticism of the government’s economic and trade policies is also frowned upon, as China’s economy further loses momentum despite a raft of supportive measures rolled out this year.

While Chinese policymakers admit pressure on the economy is increasing, state media has focused on the vastness of China’s consumer market, progress in reforms and market access, and the idea that no reward would come without hard work.

Tianfeng Securities , a mainland securities firm, said in a research note published in November that more than 2 million job ads on a prominent Chinese job website had disappeared from its website this year due to the economic slump.

Published in Dawn, December 27th, 2018

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Military option
Updated 21 Nov, 2024

Military option

While restoring peace is essential, addressing Balochistan’s socioeconomic deprivation is equally important.
HIV/AIDS disaster
21 Nov, 2024

HIV/AIDS disaster

A TORTUROUS sense of déjà vu is attached to the latest health fiasco at Multan’s Nishtar Hospital. The largest...
Dubious pardon
21 Nov, 2024

Dubious pardon

IT is disturbing how a crime as grave as custodial death has culminated in an out-of-court ‘settlement’. The...
Islamabad protest
Updated 20 Nov, 2024

Islamabad protest

As Nov 24 draws nearer, both the PTI and the Islamabad administration must remain wary and keep within the limits of reason and the law.
PIA uncertainty
20 Nov, 2024

PIA uncertainty

THE failed attempt to privatise the national flag carrier late last month has led to a fierce debate around the...
T20 disappointment
20 Nov, 2024

T20 disappointment

AFTER experiencing the historic high of the One-day International series triumph against Australia, Pakistan came...