Friday, June 8, 2012
For all those (including me) who have ever thought that loosening the bonds on China's financial press would, by improving the quality of information out there, go a long way toward improving China's corporate governance, this Caixin report (in English) makes sobering reading. What the financial press wants in many cases, it seems, is not information but good old baksheesh. They will shake down IPO companies for cash with the threat of publishing negative stories.
Just by coincidence, I heard the same complaint just a few days earlier from a businessman whose company had recently had an IPO. He said that China's financial press was all corrupt (黑). I asked him if that included Caixin, which has always had a good reputation. He said he wouldn't include them in the indictment.