SHANGHAI, March 30 – China’s securities regulator launched a crackdown on brokerages using feng shui to predict stock market developments of their analysis notes or funding advisory companies, state-owned media reported on Wednesday.
China Securities Regulatory Commission mentioned it holds “zero tolerance” in the direction of unlawful conduct within the stock market and has punished some brokers who analyzed, forecast, or supplied funding advices by making use of features of feng shui such because the heavenly stems and earthly branches, also referred to as tiangan dizhi, Yin-Yang, and Five Elements, in accordance to the official China Securities Journal.
The newspaper didn’t provide extra particulars or identify any of the brokerages that had been fined by the regulator.
Some Chinese 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 accordance to statements on the regulator’s web site, as a few of these notes prompted vast market dialogue.
The newest crackdown additionally got here at a time that Chinese stock markets are experiencing larger volatilities, with the blue-chip CSI 300 Index dropping about 14% thus far this yr.
Hong Kong-based brokerage CLSA publishes a tongue-in-cheek Feng Shui Index forward of the Lunar New Year that makes use of the Chinese zodiac to predict stock efficiency and stays fashionable amongst buyers.