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REPORT: China Has Told Reporters To Stop Saying 'Cash Crunch'

Dec 23, 2013, 22:13 IST

Feng Li/Getty Images

Despite a hefty cash injection into the economy, China's 7-day repo rate (the benchmark for interbank lending) spiked to 9.8% Monday, the highest level since this summer's liquidity crunch roiled Chinese financial markets.

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It's bad news for the Chinese economy, so China is mandating local reporters avoid using the term "cash crunch" in their stories, reports the FT's Jamil Anderlini and Simon Rabinovitch.

Reporters were warned not to "hype" stories about liquidity issues, according to the FT.

It's actually an unusual move for China. As the FT notes, the government rarely interferes with financial journalism in order to bolster the impression that Chinese markets are just as open and reliable as its developed market contemporaries.

But overall, China famously hates negative press. The country has reportedly refused to renew visas for about two dozen New York Times and Bloomberg reporters after stories from the organizations shed light on the wealth of elite Chinese families.

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Read the full report at the FT »

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