Less transparency, less faith in China stocks

This week is offering quite the split screen to investors hoping China would step up efforts to raise its capital markets game.

On one screen, the China Securities Regulatory Commission (CSRC) pledged to improve market operations, strengthen comprehensive research capabilities, deepen response mechanisms to manage market risks and hone regulations for trading.

On the other, signals that Beijing is increasing opacity surrounding the flow of capital. Specifically, how much capital international funds deploy into and out of Asia’s most volatile major stock market.

After August 18, analysts won’t be able to track net capital movements at the end of a trading day. The fact this follows a move in May to end intraday data flows with Hong Kong markets suggests this is no aberration.

And it generates more questions than answers about the state of Xi Jinping’s vision for making China a more attractive investment destination for the biggest of the globe’s big money.

Of course, there’s a third screen on which investors are keeping an eye. This one features a fresh round of stimulus.

On Tuesday, the Politburo, a Communist Party’s top decision-making body, signaled renewed efforts to reach this year’s 5% growth target focused on consumers.

Chinese leaders said the priority is increasing household income “through multiple channels” and increasing the “ability and willingness” of low- and middle-income groups to spend.

Yet the Politburo had less to say about financial upgrades at a moment when regulators are obscuring basic intelligence on capital flows.

True, exchanges still plan to provide data on turnover and trading volume in equities and exchange-traded funds through links with markets in Hong Kong.

But as regulatory signals go,