Chinese regulators contacted major US banks such as Goldman Sachs and JPMorgan recently and told them to avoid publishing politically sensitive research ahead of the Communist Party’s five-yearly national congress, according to the Wall Street Journal and other media, which noted that officials from the Chinese Securities Regulatory Commission later denied doing this.
The Congress starting in two weeks is significant because CCP members are expected to extend President Xi Jinping’s rule to a third term, but the 20th National Congress “comes amid growing public discontent over Beijing’s handling of the economy,” Markets Insider reported.
Last week China told state-owned banks to get ready to sell dollars to buy yuan in a bid to bolster the currency which fell to its worst level for years because of the dollar’s increasing strength. But the PBOC boosted liquidity by 843% – a large injection “which could have been motivated in part by the upcoming Communist Party summit”, the Insider report said.
Read the full report: Market Insider.
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