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 stated 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 called tiangan dizhi, Yin-Yang, and Five Elements, in accordance to the official China Securities Journal.
The newspaper didn’t supply extra particulars or title any of the brokerages that have 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 year after they launched reviews by making use of feng shui to kind their funding methods, in accordance to statements on the regulator’s web site, as a few of these notes prompted large market dialogue.
The newest crackdown additionally got here at a time that Chinese stock markets are experiencing increased volatilities, with the blue-chip CSI 300 Index shedding about 14% up to now this year.
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 in style amongst traders.