Recently, the stock recommendation-related content of some short videos and live broadcast platforms has attracted attention from the outside world. It is reported that Douyin's live broadcast room with 10,000 people can leverage more funds than ordinary hot money, and there are even cases where direct stock recommendation triggers abnormal movements such as individual stock price limits, which has been questioned as having compliance issues. In this regard, according to Xinhua Finance, relevant people in Douyin said that the platform has paid attention to the relevant information and is dealing with it in key areas. Recently, stock recommendation content on some short videos and live broadcast platforms has attracted widespread attention. According to media reports,The scale of funds that the tens of thousands of people on Douyin's live broadcast room can mobilize even exceeds ordinary hot money, and there are abnormal situations such as direct recommendation of stocks, causing individual stocks to rise and limit., which raised questions about its compliance.
At the same time, the relevant person in charge of Douyin Security Center learned that the platform severely cracks down on all types of illegal securities activities. For illegal content and accounts found, the platform will take measures including banning live broadcast permissions, removing content, resetting data, and banning accounts.
Xinhua Finance learned from a number of third-party investment advisory practitioners that the industry is indeed rectifying live broadcasts, short videos and other related content recently. The popularity of live broadcasts related to recommended stocks on Douyin has dropped sharply in recent days. It was learned from the industry that a third-party investment consulting company in South China has temporarily suspended digital live broadcasts recently. There is also an urgent internal notice from a leading third-party investment advisory company that short videos must not mention the names and codes of any individual stocks or replace them with passwords, and they must not publicly provide any market predictions or investment advice.
The anchor fiercely "blows votes"
Many stocks have reached their daily limit in a row
According to reports from Brokerage China, some insiders bluntly said that stock trading is now live broadcast, and investment advisors are more valuable than fund managers. Multiple anchors can push one ticket to the limit by blowing it at the same time. Other observers said that in a live broadcast room watched by 50,000 people, based on a 10% conversion rate, 5,000 people bought in at 100,000 each, and the total funds were 500 million, which can be equivalent to the amount of medium-sized hot money, and it is like a fish in water in small and medium-sized caps.
For the market, the aforementioned illegal stock recommendations in short videos have also intensified the market fluctuations of some stocks. Taking Yunnan Germanium Industry as an example, the company's stock has experienced a cumulative deviation of more than 20% from the closing price increase for three consecutive trading days, which is an abnormal fluctuation in stock trading.
The changes in Yunnan’s germanium industry are related to a small article about Huawei Semiconductor’s backdoor listing. On November 5, Yunnan Germanium Industry announced that it plans to increase capital in Yunnan Xinyao Semiconductor Materials Co., Ltd. (hereinafter referred to as Xinyao Company). At the same time, Xinyao Company is a developer of semiconductor materials and is planning to introduce new investors through capital increase and share expansion. The shareholders of Xinyao Company include subsidiaries of Huawei, and have business cooperation with related parties of the latter. However, under the "packaging" of some short video bloggers, the investment that had not yet fully determined the transaction plan turned into a backdoor listing of Huawei HiSilicon.
In this regard, Yunnan Germanium Industry clarified. On November 6, Yunnan Germanium Industry also announced that after verification, the company’s previously disclosed information did not need to be corrected or supplemented; no recent public media reports on undisclosed major information that may or have had a greater impact on the company’s stock trading price were found.
According to the Securities Times, Chuanfa Dragon Python is also one of the “concept tickets” popularly promoted by anchors in many live broadcast rooms recently. Because this stock is not only related to the U.S. election, but also the concept of "dragon" and "python" New Year's Eve, with the meaning of "getting rich" running through it, including mergers and acquisitions, Sichuan state-owned assets, lithium batteries, etc., it is called the "King of Concepts" by many live broadcast rooms.
Since September, Chuanfa Lomon's highest increase has been nearly three times. When Chuanfa Lomon's stock price is soaring, who has chosen to follow the trend or even take over? Judging from the Dragon and Tiger List, retail investors and small and medium investors have become the absolute main force. On November 5, Chuanfa Longmang hit its seventh daily limit since late October. In the past few days, the purchase volume of natural persons has exceeded 44.6 billion yuan, significantly surpassing institutional investors and Shenzhen Stock Connect investors.
On the other hand, many novice investors have recently entered the market. According to statistics from the official website of the Shanghai Stock Exchange, 20.31 million new accounts were opened in the first 10 months of 2024, including 6.85 million new accounts in October. The average monthly number of account openings from January to September 2024 is 1.5 million, and the number of account openings in October will reach 4-5 times the usual level. Since the number of accounts opened in the Shanghai Stock Exchange is basically equal to that in the Shenzhen Stock Exchange, the overall number of new A-share accounts opened in October was about 6.85 million.
“This October is the third highest level in a single month in history, and both the first and second occurred during the peak of stock market enthusiasm in the second quarter of 2015.” The Kaiyuan Securities team said that in recent years, new investors have become younger, mainly those born in the 1990s and 2000s. It is expected that the amount of incremental funds in this part will be limited. What deserves more attention is the incremental funds brought by fund transfers from existing shareholders.
Douyin: Crack down on “illegal stock recommendations”
Several typical cases have been handled recently
On October 11, Douyin Security Center issued a penalty announcement on cracking down on illegal securities activities such as "illegal stock recommendation".
Douyin stated that with the recent increase in the popularity of the capital market, illegal securities activities on the platform have increased. For example, some accounts directly call on fans to full positions in a specific stock, while a small number of accounts publish diversion content such as "dissolving orders", "sending information", "joining groups for guidance" through content hints, private messages, group chats, etc., to induce users to go outside the site to conduct "illegal stock recommendations" or commit fraud.
The platform has taken measures to deal with the illegal content and accounts discovered, including content removal, data reset, and account banning.
The platform reiterates that the following behaviors are serious violations, and the platform will take severe measures to deal with them once discovered:
1. “Illegal stock recommendation”. According to my country's laws and regulations, providing direct or indirect paid consulting services such as securities investment analysis, forecasts or suggestions to investors requires a business license from the China Securities Regulatory Commission. Providing such services by unlicensed institutions or individuals is considered "illegal stock recommendation."
According to relevant laws and regulations, Douyin strictly prohibits all types of "illegal stock recommendation" activities, including but not limited to:
1. Open a live broadcast room and recommend stocks in the names of "anchor", "broadcaster", "circle owner", etc.
2. On the platform, through videos, group chats, etc., attract attention with "sharing stock trading tips", "targeting bull stocks", "recommending dark horse stocks", etc., and attracting users to pay in various ways with "expert guidance", "big bosses watching the market", "famous experts talking about stocks" and other methods.
3. Use personal information, comments, videos and other content to create a "stock god" persona, direct users to various chat tools, and provide users with stock investment analysis opinions, buying and selling timing suggestions, and prediction of stock price trends, etc.
4. Organizing illegal stock recommendation activities under the guise of selling courses on “investor education”, “stock trading” and “finance and business”.
2. "Stock market black talk". "Stock market blackmail" refers to institutions and individuals who fabricate and spread false or misleading information to affect stock prices or trading volumes, or even manipulate the market to seek illegal benefits.
According to relevant laws and regulations, Douyin strictly prohibits all types of "stock market blackmail" behaviors, including but not limited to:
1. Disrupt the securities market by fabricating and disseminating false or misleading information.
2. Spread false or uncertain major information, induce investors to make investment decisions, affect securities trading prices or trading volumes, and conduct related transactions or seek related benefits.
3. Make public evaluations, predictions or investment suggestions on securities, their issuers, and listed companies, mislead investors into making investment decisions, affect securities trading prices or trading volumes, and conduct securities transactions in the opposite direction to their evaluations, predictions, and investment suggestions.
Douyin also reminds users to be vigilant against the above behaviors, especially when encountering situations such as investment consultation and financial management that require payment, and to treat them with caution to avoid unnecessary property losses. The platform has recently handled several typical cases:
1. The account "Big Blue" recommends specific stocks. From the end of September to the beginning of October this year, this account published predictions on the rise and fall of specific stocks many times, such as "Which stock to buy for newbies to make money?" "If you follow me on the 30th, you will make a lot of money when it opens high today" "Just buy a certain stock when it opens, I will never induce you to come in and I will ship", etc., inciting netizens to buy a specific stock in full. This behavior seriously violated laws and regulations, and the platform decided to ban the account indefinitely.
2. 9 accounts such as "A Ming, a talented person in the stock market" guide the private chat tool to recommend stocks. From the end of September to the beginning of October this year, the above-mentioned account repeatedly published content predicting the rise and fall of specific stocks, and left private chat tool contact information in personal profiles and other places to induce users to add and request "information." This behavior seriously violated laws and regulations, and the platform decided to ban the above 9 accounts indefinitely.
3. Seven accounts including “Susu 123” published stock codes and recommended stocks. Between the end of September and the beginning of October this year, the above-mentioned account posted handwritten content such as "Big Monster Haunted" and "Big Monster Quantity" many times. The "Big Monster Quantity" is actually the stock code. This behavior seriously violated laws and regulations, and the platform decided to ban the above 7 accounts indefinitely.
The platform will continue to crack down on all types of illegal securities activities. If users find relevant content on the platform, they can report it.