Chinese media is ordered to "moderate" the coverage of the cash crisis

The Chinese propaganda authorities ordered local media torturing the intensity of journalistic materials in order to contribute to stabilizing financial markets in the context of cash crisis that exacerbated in the country, Inopressa.ru reports with reference to The Financial Times .

According to the correspondent of the newspaper Simon Rabinovich, the local propaganda departments of the Communist Party of China sent the directive to the editorial office of the newspapers and television channels: to stop "inflating the so -called cash crisis" and explain to the population that the money supply in the markets is quite sufficient.

The author explains: "Chinese officials from propaganda regularly send instructions to the media in the media regarding sensitive political topics: they are conducted not to use certain words and submit information in a certain way. But the direction of such instructions in the financial media is a rare case."

This demonstrates how Beijing is afraid of disorder and panic in the financial markets.

The directive was written last week, when the Chinese stock market fell by more than 10%in a day and a half. During the expired period, the Central Bank promised banks direct cash injection, and investors calmed down more or less. The author found: the term "cash crisis" is still widely used, but the tone really softened.

Recall that the State Council (Government) of the PRC last week said that it would adjust its policy as necessary, which involves more flexible monetary conditions in the future, since the acute cash crisis aggravates the problems that the slow-down economy faces.

In addition, the Chinese Central Bank said that it would pay close attention to the last global and internal economic events, as well as monitor changes in international capital flows. The bank promised to use a number of various tools of monetary policy, which will be aimed at strengthening and improving liquidity management, money supply, and moderate growth in social financing.

"As of June 28, cash reserves in the amount of about 1.5 trillion yuan ($ 244, $ 44) were recorded in the country's banks, which can be used for payments and various needs," Shan Fulin, chairman of the Chinese commission for regulation of banks told the local media. This indicator, according to the official, is more than doubled by the need for capital.

The intra -bank interest rates in the PRC took off last week, when the authorities abandoned the open market operations in order to overcome the cash crisis of the second largest economy of the world, unable to get rid of this ailment since 2009.

The interbank lending rate jumped last Thursday to a record maximum of 13.44% of 7.66% a day earlier. On Friday, the rate fell to 8.2%. Just a month ago, banks lended each other in less than 4%.

Experts believe that the hint of the authorities is understood and in the near future the country's banking sector will avoid excessive lending in order not to bring cash reserves to a critical minimum.