Hong Hao: China silences prominent market analyst as economic slump

Hong Kong
CNN Business
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Chinese social media have shut down the accounts of a prominent market analyst who drew attention in recent weeks to the dramatic slowdown in the country’s economy and the effects of government policy on the tech industry.

Over the weekend, Tencent’s

(TCEHY) WeChat froze the public account of Hong Hao, managing director and head of research at BOCOM International, the investment banking arm of Bank of Communications, a state-owned bank and China’s fifth largest.

The move came after he posted about huge outflows of capital from the country and made bearish forecasts about the Chinese stock market on social media.

“All content has been blocked. The user is banned from using the account,” a notice posted on the WeChat account said. It added that the account had “violated” government’s internet rules, without going into details. It also did not specify which post had led to the suspension.

Hong’s account on Weibo

(WB), which had more than 3 million followers, has also been removed. A search by CNN Business for the account resulted in a message stating that the user “no longer exists.”

Covid lockdowns have taken a heavy toll on the world’s second biggest economy. The latest government survey data — released Saturday — shows activity across manufacturing and services slumping to its lowest level since February 2020.

Beijing’s zero-Covid policy, coupled with a crackdown on Big Tech, a real estate slump and risks related to Russia’s war in Ukraine, has triggered an unprecedented flight of capital by foreign investors in recent months. The yuan recently plunged to its lowest level in 17 months.

Chinese leaders have made repeated reassurances in recent days about fixing the economy. President Xi Jinping on Tuesday called for an infrastructure spending spree to promote growth. And the Communist Party’s Politburo on Friday promised “specific measures” to support the internet economy.

Hong and BOCOM International did not respond to requests for comment on the social media suspensions. Weibo didn’t reply either.

He’s not alone in expressing growing concern about the health of China’s economy and markets.

Shan Weijian, founder and chair of Hong Kong-based private equity firm PAG, recently criticized the government for policies that resulted in a “deep economic crisis,” according to the Financial Times, citing comments he made at a meeting with brokers. PAG did not respond to a request for comment.

Chinese regulators have stepped up their scrutiny of social media amid rising public discontent over Covid lockdowns in the country.
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