On February 2, the Central Bank of China announced its decision to impose administrative penalties on six rating agencies, including China Chengxin International, Shanghai New Century Credit Rating, S&P Credit Ratings (China), China Securities Pengyuan, Lianhe Credit Rating and Far Credit East. Grading The total Fine of 34.46 million yuan was imposed.

The central bank claimed that five of them related to a breach of the principle of consistency, four related to a failure to conduct credit rating business in accordance with statutory rating procedures and business rules, and four related to a breach of independence requirements.

S&P Credit Ratings (China) was warned and fined 2.12 million yuan, and the company’s rating analysis director was also fined 30,000 yuan.

China Securities Pengyuan Credit Rating Co., Ltd. was warned and fined 6,009,950 yuan, its executive vice president Qin Mouchao was fined 30,000 yuan, and its vice president Huang was fined 90,000 yuan.

Shanghai New Century Credit Rating Investment Service Co., Ltd. was fined 7.2675 million yuan, and its director and executive vice president Ding Mouliang was fined 100,000 yuan.

China Chengxin International Credit Rating Co., Ltd. was fined 7.685 million yuan for violating independence requirements and violating the principle of consistency. The company’s vice president, Wang Moufang, was fined 30,000 yuan; the company’s vice president, Ren Mouhong, was fined 130,000 yuan.

Analysis: The fines imposed on six major rating agencies are linked to the increase in A shares

Many economists believe that the punishment of the six major rating agencies is related to the rise in China’s stock market.

On the same day that the six major rating agencies were punished, the Chinese stock market suffered a sell-off during the afternoon of the 2nd. The Shanghai Stock Exchange Index fell more than 2%, falling below the 2,700 point mark for the first time since March 2020; the ChiNext Index fell by more than 3%, falling below 2,700 points. It broke 1512 points, setting a new low since April 2020. Overall, more than 5,100 stocks fell in the two cities, and 600 stocks fell by more than 9% and more than 130 stocks fell by the limit.

On February 3, Taiwanese economist Huang Shicong analyzed the Epoch Times, “The main reason why China’s stock market continues to fall is that the stock market is under economic pressure. For example, China’s economic outlook this year is not good, foreign capital continues to withdraw, along with the general People’s expectations for the stock market are not high, and the stock market has been coming under heavy pressure.”

Since the second half of last year, the Chinese stock market has fluctuated downward. In the New Year 2024, the stock market fell below the psychological mark of 2,800 points of investors several times in a row.

Liang Shaohua, former chief compliance officer of Continental Asset Management Company, analyzed to The Epoch Times: “The stock market has fallen sharply. At the beginning of the year, everyone said 2800 points, 2700 points, and 2900 was the bottom points. Now it seems to be under such a bad economic situation, there is no When is the bottom?”

“The policies of Xi Jinping and the Chinese Communist Party have led to the collapse of the Chinese economy. The stock market is an economic indicator and has been declining. Other indicators such as GDP growth, power generation, and people’s income are easy to’ r CCP to fake. But the stock market is real money. As an economic indicator, it cannot be faked unless the stock market is shut down,” he said.

On the day the stock market plunged, the Chinese Communist Party media was still singing the praises of the Chinese economy. People’s Daily Online published an article entitled “The Entire Country Is Permeated with Optimism”; Shareholders have asked, “Is this included in the stock market?”

The stock market crash exposes the CCP’s lies about economic improvement

Liang Shaohua said, “The stock market continues to fall, which is a constant slap in the face of the CCP’s lies about the economic improvement. It can’t stand it. The central bank is a hostage of the CCP, so it fines a degree Although it is strange, it is not surprising.

“Because the rating company said something that the CCP didn’t like to hear and it was bad for the economy, it fined it. But there should be no real enforcement in the law. Because the stock market is an indicator of the economy. The rating report of The credit rating agency is the response of China’s economic entities. The stock market will fall regardless of whether there is a rating. It is not the rating report that causes the decline of China’s economy and the stock market. “

Previously, many credit rating agencies expected that China’s financial risks would continue to rise. Among them, S&P China said in the report that due to the weak real estate industry, the risk of China’s economic downturn is high, which will further have a negative impact on real estate sales.

Liang Shaohua said, “Under certain circumstances, downgrading a company’s rating may affect the company’s stock. But China’s economy and China’s stock market are not affected by several rating reports. After the new coronavirus epidemic (Chinese Communist Party virus) , everyone hopes As China’s economy recovers, under the various regressive policies of the CCP, the economy does not recover but declines. Therefore, the downward trend of the stock market is determined However, sometimes The CCP will save the market through policies and funds, but it cannot change the underlying trend of the stock market decline.”

In order to save the stock market, the CCP has recently introduced many policies and measures, including cutting interest rates and reserve requirement ratios, launching a national entry-level fund to protect the stock market, and the national team taking the reins. crushed the market, but they have all failed.

Huang Shicong analyzed: “This is a downward trend of the overall Chinese economic trend. In order to save the stock market, there is only a drastic policy change, but it cannot do it, so it punishes these credit rating agencies. Because the credit rating agencies downgraded China The outlook for the stock market may have downgraded the grade of the Chinese stock market and the grade of the country. Of course, it will cause withdrawal of money, and even investors will not have confidence in the economy in the future. Party) central bank punishes credit rating agencies to prevent them from making statements unfavorable to the Chinese economy. analysis report.”

“I think this is a cover-up. (The CCP) may think it can slow down the decline of China’s stock market, but the mainland people know the real situation about the economy. At present, the central bank (the CCP) ) be thinking of how to save the depreciation of foreign exchange and RMB. , or introduce a plan to stimulate the economy instead of punishing credit rating agencies If you look at it from the perspective of normal capitalism, you will think this behavior pretty stupid,” he said.

Global stock markets have performed well since 2023, including the US, German, French, Japanese and Indian stock markets, all of which have reached record highs.

Huang Shicong said that although the global stock market has reached new highs, China’s stock market has been falling, which actually represents the future of China’s economy. “If China’s economic system continues to turn left in the future, will (investors) need to stay in the Chinese market with this kind of stock market system that is biased towards capitalism? There will be a general loss too. corporate competitiveness in China as the state advances and the private sector retreats. Now China The status of the world’s factory has also been lost, which has a negative impact on the stock market Until the problems this are resolved, it is difficult to see an optimistic situation in the stock market.”

Mainland investors are flocking to the US Embassy in China for help

On the afternoon of February 2, it was suspected that the CCP’s “national team” was hunting for a deal, the Shanghai Composite Index rebounded slightly and eventually closed at 2730.15 points, a decrease of 1.46%.

On that day, tens of thousands of investors poured into the official Weibo of the US Embassy in China, leaving messages under posts about saving giraffes, asking the US to take over the Chinese stock market, and even insulting the CCP system in public and asked the United States to send an aircraft carrier over, “China “will open a way for you” and so on.

Many investors also left messages under the “Joint Statement on the Third Anniversary of the Myanmar Military Coup” posted on the official Weibo of the US Embassy in China, asking the US to save China’s A shares. “A shares are breaking leeks, ask the Lighthouse to bring your warships over.”, “Strike right”, etc.

Liang Shaohua said: “This is a kind of black humor among ordinary people under the rule of the CCP. Because under the CCP system, you have no right to speak out under any circumstances. You cannot petition or demonstrate, and the CCP has been suppressing voices and arresting people, but we still cannot close the people because this dissatisfaction has accumulated to a certain extent.”

He said that if something happened to a CCP official, the first thing he would think of would be to seek refuge in the US Embassy. Like Wang Lijun, the descendants of many officials have been sent to European and American countries. “Now that people are becoming smarter and smarter, the problem cannot be solved. To solve the problem, file a lawsuit. In fact, it is of no use. Expressing extreme dissatisfaction with the CCP is just performance art. “