Corrupt media and journalistic practices, and dubious financial information from Chinese rating agencies and analysts, are jeopardising China's economy by obscuring the financial health of companies and the risk of defaulting on loans. Thirdly, "envelope journalism" ensures positive media coverage for companies who slip money to journalists in exchange for favourable reportage. Secondly, despite the recent warning by the International Monetary Fund of $1.3tn bad corporate loans and a tripling of corporate defaults in 2016, China's rating agencies have awarded investment grade status to 99.5% of all public debt outstanding. Firstly, stock market analysts have unanimously recommended "buy" calls on all companies in the Shanghai Composite index. However, the Communist Party's instruction to promote harmony in the state-run media ensures no critical analysis or recognition of the burden of economic debt.
Corrupt media and journalistic practices, and dubious financial information from Chinese rating agencies and analysts, are jeopardising China's economy by obscuring the financial health of companies and the risk of defaulting on loans. Firstly, "envelope journalism" ensures positive media coverage for companies who slip money to journalists in exchange for favourable reportage. Secondly, despite the recent warning by the International Monetary Fund of $1.3tn bad corporate loans and a tripling of corporate defaults in 2016, China's rating agencies have awarded investment grade status to 99.5% of all public debt outstanding. Thirdly, stock market analysts have unanimously recommended "buy" calls on all companies in the Shanghai Composite index. However, the Communist Party's instruction to promote harmony in the state-run media ensures no critical analysis or recognition of the burden of economic debt.