China's Major Investment Bank Restricts Analysts From Making Bearish Calls And Displaying Wealth

One of China’s leading investment banks, China International Capital Corp. (CICC), has issued a directive barring its analysts from making bearish market calls and showcasing their affluent lifestyles.

As reported by Bloomberg, the Beijing-based firm sent an internal memo to its research department, prohibiting negative comments about the economy or markets in both public and private discussions. Employees were also warned against displaying luxury brands or revealing their salaries to third parties.

This move comes as Beijing continues its crackdown on wealthy bankers and is part of President Xi Jinping‘s push for “common prosperity.” Beijing has criticized the “hedonistic” lifestyles of bankers and ordered them to align with the president’s policies.

Furthermore, the directive reflects growing self-scrutiny within Chinese financial institutions. Concerns are mounting among international investors as China seems to be restricting access to transparent data and research, affecting investment decisions.

Analysts are urged to exercise extra caution when sharing views with overseas clients to minimize national security and political risks.

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The memo also extends to employee family members, guiding their conduct on social media, client engagement, and expense reimbursement.

CICC has not responded to requests for comment. However, it is not the only bank implementing such restrictions. Other unnamed major investment banks have reportedly issued similar verbal guidance.

Such restrictions have made it challenging for financial conference organizers to find speakers willing to share candid views about the Chinese economy and markets.

CICC, facing dwindling profits and leadership changes, has already implemented cost-cutting measures. This includes slashing some senior bankers’ compensation by over 40% and retracting travel benefits.

The emerging strict corporate environment indicates that bankers may have to prepare for more challenges ahead.

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