SHANGHAI, March 30 – China’s securities regulator launched a crackdown on brokerages utilizing feng shui to foretell inventory market tendencies of their analysis notes or funding advisory companies, state-owned media reported on Wednesday.
China Securities Regulatory Fee mentioned it holds “zero tolerance” in direction of unlawful habits within the inventory market and has punished some brokers who analyzed, forecast, or supplied funding advices by making use of points of feng shui such because the heavenly stems and earthly branches, often known as tiangan dizhi, Yin-Yang, and 5 Components, in line with the official China Securities Journal.
The newspaper didn’t supply extra particulars or identify any of the brokerages that have been fined by the regulator.
Some Chinese language brokerages, together with Guosheng Securities and Essence Securities, have acquired warning letters from the regulator over the previous yr after they launched stories by making use of feng shui to type their funding methods, in line with statements on the regulator’s web site, as a few of these notes prompted extensive market dialogue.
The newest crackdown additionally got here at a time that Chinese language inventory markets are experiencing larger volatilities, with the blue-chip CSI 300 Index dropping about 14% up to now this yr.
Hong Kong-based brokerage CLSA publishes a tongue-in-cheek Feng Shui Index forward of the Lunar New 12 months that makes use of the Chinese language zodiac to foretell inventory efficiency and stays well-liked amongst buyers.