Hong Hao: a Chinese analyst leaves his bank after the freezing of social media accounts

Hong Hao: a Chinese analyst leaves his bank after the freezing of social media accounts

ten cents (TCEHY) WeChat froze Hong’s public account over the weekend, after posting huge capital outflows from the country and making bearish predictions on the Chinese stock market.

Hong was Managing Director and Head of Research at BOCOM International, the investment banking arm of Hong Kong-based Bank of Communications, China’s fifth-largest bank.

A BOCOM International spokesperson told CNN Business on Wednesday that Hong had resigned from the company for personal reasons.

Hong declined to comment. His Weibo account, which had more than 3 million followers, was also deleted over the weekend.

The Covid lockdowns have weighed heavily on the world’s second largest economy. The latest government survey data – released on Saturday – shows activity in manufacturing and services falling to its lowest level since February 2020.

Beijing’s zero-Covid policy and its crackdown on Big Tech have triggered unprecedented capital flight from foreign investors in recent months. The yuan recently plunged to its lowest level in 17 months.

It’s still unclear which of Hong’s posts sparked social media to prohibit.

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The latest reports posted on its WeChat public account were titled: “Beware of capital flight” and “What should Chinese ADRs be worried about.” ADRs are securities issued by Chinese companies listed in the United States.

Hong warned in the reports against foreign investors dumping Chinese equities and drew attention to the most serious capital outflow since the start of the pandemic. He also blamed China’s tech crackdown, rather than new US rules on foreign company listings, as behind an epic sell-off in Chinese ADRs in March.

In another note from March 21, Hong also predicted that the Shanghai Composite would fall below 3,000 points.

Last Monday, the Shanghai Composite fell below 3,000 for the first time in 21 months, as rising Covid-19 cases in Beijing raised fears that the Chinese capital could join Shanghai and other major cities. in confinement.

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