China's CICC Bars Negative Economic Views and Luxurious Displays Among Analysts

China International Capital Corp (CICC), recognized as the third-largest investment bank by market capitalization in China, has reportedly issued an internal memo instructing its analysts to abstain from publishing pessimistic views about the Chinese economy or financial markets. This directive aligns with a broader trend of censorship in China's financial commentary, especially as economic growth has shown signs of slowing.

Guidelines for Analysts

The memo, which has made its way to the bank's research department, explicitly cautions against expressing viewpoints that contradict government policies. Moreover, CICC has imparted directives for its staff to avoid sporting luxury brand attire and to keep their remuneration details private. The document even extends its reach, urging employees to ensure their family members live up to certain social and ethical expectations.

Corporate Silence

Drawing no comments from CICC upon Reuters' inquiries, the internal memo has stirred conversations about corporate etiquette and political conformity. CICC's prominence in international deal-making comes with a caveat, as highlighted in the memo, that additional prudence is necessary when managing affairs with overseas clients to sidestep political and security pitfalls.

A Shift in the Financial Culture

China's economic growth has been under the microscope, and the subsequent tightening of regulations on financial discourse is part of a grander scheme. The government has been laying the groundwork for broader campaigns against corruption, and criticizing the so-called 'financial elite' for extravagant living—a pivot towards 'common prosperity.' Verbal advisories were relayed to Chinese bankers as early as 2022 to halt the social media flaunting of opulent lifestyles.

Furthermore, there's been a sweeping movement to dial back in bankers' compensations and curtail budgets across corporate dimensions like travel and entertainment. Reports from April revealed CICC's decision to cut bonuses for its bankers by up to 40%.

CICC, censorship, China