The Cyberspace Administration of China, in conjunction with financial regulatory authorities, has recently taken legal action against a batch of accounts and websites that spread false information about the capital market, conduct illegal stock recommendations, and engage in virtual currency trading. Some typical cases are as follows:
Spreading False Information
Accounts such as “Love Stocks APP” have posted false information about the capital market. The Weibo account “Love Stocks APP” and the Douyin account “Value Discoverer” have posted false information about the institutional arrangements for margin trading and short selling. The WeChat official account “Captain Jack Macro Strategy” spreads rumors about the regulatory policies of quantitative funds. The Baidu Baijiahao account “Beixiongmiao” released false information such as the adjustment of trading hours in the capital market. The involved accounts have been closed in accordance with the law and the agreement.
Illegal Stock Recommendations
Accounts like “Kan Ge Talks Finance” have been conducting illegal stock recommendations. Douyin accounts such as “Kan Ge Talks Finance” and “Fallen Leaf Peak,” WeChat official accounts like “Little Dolphin Big Dream” and “Wind Clear Yang Big Hero,” Weibo accounts like “Lang Sha Tao Jin Xia” and “Niu Bian Tian Xia -,” and Kuaishou accounts like “Finance Old Leek” and “Golden Leaf Finance,” etc., have used inflammatory or suggestive words. They have guided investors to pay to join groups and follow up to buy individual stocks, hinted at predicting the trend of individual stocks, and claimed that buying certain stocks is a sure bet, engaging in illegal stock recommendation. The involved accounts have been closed in accordance with the law and the agreement.
Promoting Virtual Currency Trading
Accounts and websites such as “Huoge Talks about Encryption” promote and hype virtual currency trading. Weibo accounts such as “Huoge Talks about Encryption,” “Finance – Xu Yanwen,” and “An – Discussing Coins,” as well as Zhihu account “00s Rich Generation,” have lured netizens to participate in virtual currency transactions by sharing group chat messages and screenshots of earnings. Domestic website platforms such as pkex, weex, and htx provide application download services or indirect trading services for overseas virtual currency trading platforms. The involved accounts and websites have been lawfully shut down.
Spreading Information on Black and Gray Industries
Accounts like “Xiaobeiyou” spread information about black and gray industries in the financial field. Xiaohongshu accounts such as “Xiaobeiyou” and “Sanxiansheng,” as well as Baidu Baijiahao accounts like “National Loan Assistance for You” and “Shiquan Jimei,” spread slogans like “debt optimization,” “negotiated repayment,” “professional anti-collection,” and “full policy cancellation,” fabricate successful cases, and induce and incite financial consumers to use suspected illegal and non-compliant means to protect their rights, disrupting the normal order of the financial market and infringing upon the legitimate rights and interests of financial institutions. The involved accounts have been closed in accordance with the law and the agreement.
Public Reminder
The Cyberspace Administration hereby reminds all netizens to establish a correct investment concept, enhance risk prevention awareness, strengthen the discrimination of financial information, refrain from creating, spreading, or believing rumors, stay away from illegal financial activities, and be cautious of personal property loss or information leakage. Meanwhile, the cyberspace administration will continue to maintain a high-pressure and strict crackdown stance and also calls on the general public to actively report problem leads.
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