from Natural News:
The Chinese government is known for its authoritarianism and secrecy, which helps explain why there has been a crackdown of sorts on any journalists seeking to report the truth surrounding China’s stock market plunge and economic disorder. (Republished from Collapse.news.)
As noted by Zero Hedge, Chinese authorities have been working for two months to control not just the country’s stock market but also the narrative surrounding the market’s recent negative performance.
“After an unwind in the CNY1 trillion back alley margin lending complex sparked a late June selloff, China cobbled together a plunge protection team run by China Securities Finance (an arm of CSRC [China Securities Regulatory Commission]) and began intervening in the market,” Zero Hedge reported. “That effort has cost an estimated CNY900 billion so far.”
However, the financial news and commentary site noted, on July 20 the well-respected Caijing magazine suggested that the CSF was preparing to scale back market interventions that many believed had kept the Shanghai Composite, China’s main stock market index, from collapsing altogether.
$5 trillion in lost value
That report caused futures to slide in China in very short order, but the “rumor” was denied by the CSRC. And, as reported by Bloomberg Business, the reporter was quickly arrested for “spreading fake stock and futures trading information.”
The Chinese probe of the magazine and reporter was announced by Xinhua News Agency, the government’s official mouthpiece, which also called for efforts to “purify” the markets after a $5 trillion loss in trading value.
In addition, the news service carried quotes from a central bank researcher who attributed the market rout to an expected Federal Reserve rate increase in the U.S.
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