“Increased scrutiny of third-party advisor regulation, and the beneficiaries behind the ‘Douyin (TikTok) stock trading’ phenomenon face a crackdown?”
- The hammer is falling.
- Following the surge of short videos, investment advisory services are reportedly entering a fast lane.
- In late September, after a period of intense activity in the A-share market, Douyin (TikTok) recommendations for stocks garnered attention from various parties.
- Numerous financial commentators have risen to prominence on Douyin, indirectly causing some volatility in capital markets.
- Behind these rapidly rising financial commentators lies a significant force: third-party investment advisory service companies.
- It’s understood that many third-party advisory firms operate multiple accounts on short video platforms, using content distribution (投流) to attract users to watch investment teaching videos and boost enthusiasm for purchasing corresponding products.
- There are even rumors that one third-party advisory firm achieved revenue of 10 billion yuan in October alone, exceeding its first-half earnings.
- However, “good times” are facing more uncertainties.
- Since November, multiple departments have issued notices requiring securities service institutions to strengthen the compliance management of self-media accounts.
- On November 15th, Futu Securities (300033.SZ) announced that a subsidiary was penalized by the China Securities Regulatory Commission for engaging in suggestive stock recommendations through livestreaming.
- This may be signaling a stricter regulatory environment.
- The expansion of third-party investment advisory service firms like Fangyuan Intelligence Investment (9636.HK) is likely to face greater pressure.
Close Monitoring by Regulators
The rise of short video platforms like Douyin (TikTok) has amplified emotional voices and indirectly impacted trading behavior.