Chinese media told to soften 'cash crunch' news

Chinese propaganda authorities have emphasized the need for “positive” news coverage of the cash crunch to help stabilize markets, Financial Times reported. A Communist Party directive on media coverage was reportedly written early last week when the Chinese stock market contracted more than 10% over the course of a day and a half, giving rise to panic. Only during the past few days was the document issued to China’s media outlets. China’s powerful propoganda department regularly sends instructions to local media on how to frame politically sensitive topics, but it is rare for these guidelines to be sent to financial media as well.