Exclusive | Chinese media told to tone down coverage of giant firms’ debt, finance woes

Chinese media outlets were told not to play up the financial and debt problems of big Chinese conglomerates such as HNA Group and Dalian Wanda Group, according to two sources briefed on the instructions issued by the authorities. 

The instructions issued a few weeks ago were not a ban on coverage of specific companies, but a reminder that media reports should not help stir or spread market panic, the sources said.

Another two sources with Chinese state media told the South China Morning Post general guidelines on cautious reporting to ensure market stability were always in place, but were often updated with more specific instructions if there were signs of turbulence in the markets.

Sections of Chinese media are directly controlled by the government, with other commercial outlets subject to routine scrutiny by official censors.

A leaked document from China’s banking regulator last June showed Beijing was placing the country’s high-profile global deal makers under increased scrutiny, although the Chinese government has never named any companies targeted in official statements.

The Chinese leadership under President Xi Jinping has made bringing financial risks under control – including high levels of corporate debt – a top priority. The government has criticised some deals to buy overseas property and assets, financed through debt, as “irrational” and a potential threat to financial stability.