A state-owned Chinese newspaper issued a rare rebuttal of Goldman Sachs Group Inc. research after the securities firm’s analysts recommended selling shares of local banks, the latest sign of official attempts to counter negative sentiment in markets as the economy slows.

The market shouldn’t take a bearish view on Chinese banks based on pessimistic assumptions, and negative premises are misinterpretations of the facts, according to a Securities Times report Friday, referring to a Tuesday research note from Goldman. Banks have been actively lowering their exposure to property loan risks, while local governments have stepped up efforts to ease debt risks, the Securities Times said.

A Goldman spokesperson declined to comment on the Securities Times report.

The public rebuke came after shares of Chinese lenders led a selloff in Hong Kong Thursday, with Goldman’s latest downgrades of the sector intensifying pessimism about the country’s ailing economy. It also reflects Beijing’s growing unease with eroding investor confidence at a time when debt pressure and financial stress are on the rise.

Goldman analysts including Shuo Yang highlighted in their note risks to banks’ margin from local government debt and more losses within credit portfolios, which could weaken earnings growth, pressure capital accumulation and thus affect dividend payout levels.

The Wall Street giant has sell ratings for three Hong Kong-listed Chinese banks, including Industrial and Commercial Bank of China Ltd., Agricultural Bank of China Ltd. and Bank of Communications Co. It also has neutral ratings on Bank of China Ltd. and China Merchants Bank Co.

--With assistance from Amanda Wang.