China Analyst Hong Hao Has Social Media Accounts Frozen

(Bloomberg) -- The public social media accounts of Bocom International Holdings’ China strategist Hong Hao were suspended for unspecified violations following recent bearish reports on the country by the outspoken analyst.

His WeChat public account, called “Hong Hao’s China Market Strategy” has been frozen since at least late Saturday. All contents have been blocked, according to a notice posted on the account which cited violations against WeChat’s public account service rules. His Weibo account, with more than 3 million followers, was still valid on Saturday afternoon but also in suspension mode.

While it’s unclear which of Hong’s posts may have crossed the line, China has in recent weeks censored social media posts related to economically-disruptive lockdowns. The benchmark CSI 300 Index fell to a two-year low last week -- one of the world’s worst-performing equity gauges this year with a 19% loss. That hasn’t stopped state-run media from publishing a series of articles projecting confidence in markets.

Hong did not immediately respond to a message sent via WeChat seeking comment on the suspension. 

In late March, as authorities locked down Shanghai, Hong voiced his concern about the restrictions. “Shanghai: zero movement, zero GDP,” he said in a post on Twitter.

Hong is ubiquitous on traditional and social media, appearing regularly on financial news outlets including Bloomberg TV and CNBC. He also has a track record in making accurate predictions about China’s stock market, once successfully calling the stock boom and bust cycle in 2015.

In a report dated March 21, Hong predicted the Shanghai Composite Index could trade in a range between 3,200 and 3,800, with a possibility it would slip below 3,000 in the worst case scenario. The index fell to as low as 2,863.6 on April 27, and closed at 3,047.06 on April 29.

Hong also blamed China’s crackdown on tech companies for a crash in Chinese ADRs, and warned of lower valuations in those offshore listed shares and possible capital flight because of regulatory spats between Beijing and Washington.

Tencent Holdings Ltd. last year imposed a rare ban on more than 1,000 WeChat accounts after China cracked down on commercial platforms and social media accounts posting financial information that it deemed harmful to its economy. A total of 1,463 WeChat accounts, including one run by Essence Securities Co.’s chief strategist Chen Guo, were banned due to unspecified financial media irregularities.

In his last post on Saturday, Hong spoke of his philanthropic donation of book royalties. Social media posts circulated on Friday that he was being penalized for his bearish estimates on China stocks and would be dismissed by the company. Hong marks his 10th anniversary at Bocom on Sunday.

©2022 Bloomberg L.P.

With assistance from Bloomberg