Xinhua Network, Dongmang and Shanghai Securities Network reported that China’s National Internet Innovation Office, along with related ministries, caught and severely disposed of accounts that publicly recommended stocks, induced investors, and sold illegal recommended software to correct inappropriate financial information on the Internet.
The targets of the crackdown are accounts that recommend specific stocks, induce investment group membership, and engage in illegal program sales.
Some accounts formed trust by presenting revenue certification images or investment techniques under the guise of investment experts, and encouraged the sale of certain stocks. All of the accounts in question were closed.
Other accounts used exaggerated expressions such as “internal information” and “certain profits,” lured users to group chat rooms, and made illegal stock recommendations for a large subscription fee. They also received measures such as closing their accounts.
In addition, through live broadcasting, artificial intelligence (AI)-based stock selection software or price prediction models were also caught to induce purchases of paid services.
Xinhua Network pointed to “Janggeo-gun Xuechu,” “Wei Qi Tuyan,” and “Funkou Department” as representative examples cracked down on this time. They attracted investors by recommending open stocks, inducing crowd-following trading, attracting group rooms, and selling illegal programs.
WeChat’s official account “Wang Mingus Edition” and Xiao Hongsu’s account “Hai Zi Su A Rong” presented a profit certification screen and actual transaction cases, and induced the purchase of stocks by using the image of investment experts.
In addition, Shechu’s “WeChu Tuyen,” Weibo’s “Shi Wencheon,” and Bilibili’s “Jungli 4723” emphasized “expert recommendation” and “no loss” to encourage membership in paid groups.
In addition, Quai Yiwu accounts “Funkou Department,” “Chai Jing Chije,” and “Kunantanggu” sold paid services by exaggerating price prediction accuracy by using “high-efficiency AI item selection software.”
The authorities urged investors to establish rational investment principles and strengthen risk awareness. It also urged caution to increase the ability to identify the authenticity of financial information and not participate in various illegal financial activities.
JENNIFER KIM
US ASIA JOURNAL
