The picture shows the office building of the rating agency Standard & Poor’s. (DON EMMERT/AFP via Getty Images)
[The Epoch Times, February 3, 2024](Epoch Times reporter Li Yun interviewed and reported) China’s stock market continued to plummet. As investors poured into the U.S. Embassy’s Weibo to leave messages for help, the Central Bank of the Communist Party of China announced on the 2nd that it would impose sanctions on S&P China and others. The six major rating agencies were fined a total of 34.46 million yuan (RMB, the same below), and executives of some rating agencies were also fined.
On February 2, the Central Bank of China announced its decision to impose administrative penalties on six rating agencies, including China Chengxin International, Shanghai New Century Credit Rating, S&P Credit Ratings (China), China Securities Pengyuan, Lianhe Credit Rating and Far East Credit Rating. The total A fine of 34.46 million yuan was imposed.
The central bank claimed that five of them involved violations of the principle of consistency, four involved failure to conduct credit rating business in accordance with statutory rating procedures and business rules, and four involved violations of independence requirements.
S&P Credit Ratings (China) was warned and fined 2.12 million yuan, and the company’s rating analysis director was also fined 30,000 yuan.
China Securities Pengyuan Credit Rating Co., Ltd. was warned and fined 6,009,950 yuan, its executive vice president Qin Chao was fined 30,000 yuan, and its vice president Huang was fined 90,000 yuan.
Shanghai New Century Credit Rating Investment Service Co., Ltd. was fined 7.2675 million yuan, and its director and executive vice president Ding Mouliang was fined 100,000 yuan.
China Chengxin International Credit Rating Co., Ltd. was fined 7.685 million yuan for violating independence requirements and violating the principle of consistency. The company’s vice president Wang Moufang was fined 30,000 yuan; the company’s vice president Ren Mouhong was fined 130,000 yuan.
Analysis: The fines imposed on six major rating agencies are related to the plunge in A-shares
Many economists believe that the punishment of the six major rating agencies is related to the plunge in China’s stock market.
On the same day that the six major rating agencies were punished, the Chinese stock market suffered a sell-off in the afternoon of the 2nd. The Shanghai Stock Exchange Index fell by more than 2%, falling below the 2,700-point mark for the first time since March 2020; the ChiNext Index fell by more than 3%, falling below 2,700 points. It broke 1512 points, setting a new low since April 2020. Overall, more than 5,100 stocks fell in the two cities, of which 600 stocks fell by more than 9% and more than 130 stocks fell by the limit.
On February 3, Taiwanese economist Huang Shicong analyzed the Epoch Times, “The main reason why China’s stock market continues to fall is that the stock market is under economic pressure. For example, China’s economic outlook this year is not good, foreign capital continues to withdraw, coupled with the general People’s expectations for the stock market are not high, and the stock market has been falling under heavy pressure.”
Since the second half of last year, the Chinese stock market has fluctuated downwards. In the New Year of 2024, the stock market fell below the 2,800-point psychological mark of investors several times in a row.
Liang Shaohua, former chief compliance officer of Continental Asset Management Company, analyzed to The Epoch Times: “The stock market has fallen sharply. At the beginning of the year, everyone said that 2800 points, 2700 points, and 2900 points were the bottom points. Now it seems that under such a bad economic situation, there is no When is the bottom?”
“The policies of Xi Jinping and the Chinese Communist Party have led to the collapse of the Chinese economy. The stock market is an economic indicator and has been declining. Other indicators such as GDP growth, power generation, and people’s income are easy for the CCP to fake. But the stock market is real money. As an economic indicator, it cannot be faked unless the stock market is shut down,” he said.
On the day the stock market plummeted, the Chinese Communist Party media was still singing praises for the Chinese economy. People’s Daily Online published an article titled “The Entire Country Is Permeated with Optimism”; Shareholders have asked, “Is this included in the stock market?”
The stock market plunge exposes the CCP’s lies about economic improvement
Liang Shaohua said, “The stock market continues to fall, which is a constant slap in the face of the CCP’s lies about the economic improvement. It can’t stand it. The central bank is a pawn of the CCP, so it fines rating companies. Although it is strange, it is not surprising. .”
“Because the rating company said something the CCP didn’t like to hear and badmouthed the economy, it fined it. But there should be no real enforcement in the law. Because the stock market is the indicator of the economy. The rating report of the credit rating agency is China’s The reaction of economic entities. The stock market will fall regardless of whether there is a rating. It is not the rating report that causes the decline of China’s economy and the stock market.”
Previously, many credit rating agencies expected that China’s financial risks would continue to rise. Among them, S&P China said in the report that due to the weak real estate industry, China’s economic downturn risk is high, which will further have a negative impact on real estate sales.
S&P Global’s logo. (Alastair Pike/AFP via Getty Images)
Liang Shaohua said, “Under certain circumstances, the downgrade of a company’s rating may affect the company’s stock. But China’s economy and China’s stock market are not affected by several rating reports. After the new coronavirus (Chinese Communist Party virus) epidemic, everyone hopes that As China’s economy recovers, under the CCP’s various retrograde policies, the economy does not recover but declines. Therefore, the downward trend of the stock market is determined. However, the CCP will sometimes rescue the market through policies and funds, but it cannot change the fundamental trend of the stock market decline. “
In order to save the stock market, the CCP has recently introduced a lot of policies and measures, including cutting interest rates and reserve requirement ratios, launching a national entry-level fund to protect the stock market, and the national team taking the lead in smashing the market, but they have all failed.
Huang Shicong analyzed: “This is the downward trend of the overall Chinese economic trend. To save the stock market, there is only a drastic policy change, but it cannot do it, so it punishes these credit rating agencies. Because the credit rating agencies downgraded China The outlook for the stock market may have downgraded the rating of the Chinese stock market and the country’s rating. Of course, it will cause the withdrawal of funds, and even investors will have no confidence in the future economy. The (Chinese Communist Party) central bank punishes credit rating agencies to stop them from making statements that are unfavorable to the Chinese economy. analysis report.”
“I think this is a cover-up. It (the CCP) may think it can slow down the decline of China’s stock market, but the mainland people know the actual situation about the economy. At this time, the central bank (the CCP) should be thinking about how to save the depreciation of foreign exchange and RMB. , or to introduce a plan to stimulate the economy instead of punishing credit rating agencies. If you look at it from the perspective of normal capitalism, you will think this behavior is quite stupid,” he said.
Global stock markets have performed well since 2023, including the stock markets of the United States, Germany, France, Japan, and India, all of which have reached record highs.
Huang Shicong said that while the global stock market has reached new highs, China’s stock market has been falling, which actually represents the future of China’s economy. “If China’s economic system continues to turn to the left in the future, will it be necessary for (investors) to stay in the Chinese market with this kind of stock market system that is biased toward capitalism? There will also be a loss of overall corporate competitiveness in China as the state advances and the private sector retreats. Now China The status of the world’s factory has also been lost, which has a negative impact on the stock market. Until these problems are solved, it is difficult to see an optimistic situation in the stock market.”
Mainland investors flock to the U.S. Embassy in China for help
On the afternoon of February 2, it was suspected that the CCP’s “national team” was bargain hunting. The Shanghai Composite Index rebounded slightly and finally closed at 2730.15 points, a decrease of 1.46%.
On that day, tens of thousands of investors poured into the official Weibo of the U.S. Embassy in China, leaving messages under a post about rescuing giraffes, requesting the U.S. to take over the Chinese stock market, and even publicly scolded the CCP system and asked the U.S. to send an aircraft carrier over, “China “He will open a way for you” and so on.
Many investors also left messages under a “Joint Statement on the Third Anniversary of Myanmar’s Military Coup” posted on the official Weibo of the U.S. Embassy in China, requesting the United States to save China’s A-shares. “A-shares are cutting leeks, please ask Lighthouse to bring your warships over.” “, “Please strike accurately”, etc.
(webpage Screenshot)(webpage Screenshot)
Liang Shaohua said: “This is a kind of black humor among ordinary people under the rule of the CCP. Because under the CCP system, you have no right to speak out under any circumstances. You cannot petition or demonstrate, and the CCP has been suppressing voices and arresting people. people, but we still cannot shut up the people because this dissatisfaction has accumulated to a certain extent.”
He said that if something happened to a CCP official, the first thing he would think of would be to seek asylum at the U.S. Embassy. Like Wang Lijun, the descendants of many officials have been sent to European and American countries. “Now that people are getting smarter and smarter, the problem cannot be resolved. To solve the problem, file a lawsuit. In fact, it is of no use. It is just performance art to express extreme dissatisfaction with the CCP.”
Editor in charge: Lin Congwen
2024-02-03 10:37:30
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