Crackdown on stock market 'black mouths'

Huang Yixuan
The Shanghai bureau of the China Securities Regulatory Commission and the cyberspace administration are tackling illegal financial information on the Internet.
Huang Yixuan

Shanghai is cracking down on "black mouths" trying to manipulate stock prices with online posts tempting people into buying certain shares.

The Shanghai bureau of the China Securities Regulatory Commission recently joined hands with the cyberspace administration to launch a special campaign stamping out illegal financial information spread on the Internet.

The regulators have deleted or blocked more than 17,000 pieces of harmful information, taken down 3,187 audio and video programs, dealt with over 8,000 illegal accounts, and shut down 53 livestreaming channels, according to an announcement by the bureau on Wednesday.

The flourishing of social media platforms has offered more channels for people to acquire useful information, while the downside is that it has also led to the increasing risk of harmful misinformation.

"The 'black mouth' online stock manipulators, illegal stock recommendations and over-the-counter capital allocation activities have seriously disrupted economic and social order, and harmed the legitimate rights and interests of investors," said the bureau.

The cyberspace administration urges local Internet platforms to enhance oversight of content involving securities investment and asset management, and to curb the spread of fake and misleading information likely to disturb market order.

On some major platforms, only accounts of qualified individuals and institutions are allowed to post content likely to affect people's investment decisions.

Platforms have also made efforts to enhance investor education, opening special channels for users to learn the basics of the securities market and avoid irrational financial decisions.

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