China's Cyber Watchdogs Says to Crack Down on Financial Information Providers

Domestic providers of financial information, including financial analysis, market report and financial trading agencies, are expanding quickly over the past few years, and according to CAC, some of these institutions are purposefully speculating on market risks and distorting financial regulatory polices.

Shirley Tian
    Dec 26, 2018 12:02 PM  PT
China's Cyber Watchdogs Says to Crack Down on Financial Information Providers
author: Shirley Tian   

China's cyber watchdog on Wednesday issued new regulations for financial information on the internet, saying providers are not allowed to distort the interpretation of the country's fiscal and monetary policies. 

Financial information providers are also not allowed to fabricate news or events that could move stock, fund, futures and foreign exchange markets, the Cyberspace Administration of China said (CAC) in a statement on its website.

The CAC said violators of the regulations, due to take effect on Feb. 1, will be "condemned publicly" and "ordered to rectify" their errors. 

Domestic providers of financial information, including financial analysis, market report and financial trading agencies, are expanding quickly over the past few years, and according to CAC, some of these institutions are purposefully speculating on market risks and distorting financial regulatory polices. Fabricating news or events that could move stock, fund and futures are not illegal and criminal cases will be brought forward if violations constitute a crime, it added.

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

Just two days ago, the human resource company 51job Inc. (Nasdaq: JOBS) criticized an analysis from a Chinese securities firm, Tianfeng Securities,  which concluded that more than 2 million job ads have disappeared from its platform this year as the economy slowed.

"The content of that research is contrary to facts," 51job said, criticizing the research approach as loose and irresponsible, stressing it owns multiple recruitment websites besides the main 51job website.

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