Caring for investors, working together for action - Beware of illegal stock recommendation activities under the guise of 'investor education'.

May 25,2021

The China Securities Regulatory Commission has established the "5.15 National Investor Protection Publicity Day" to conduct activities nationwide on a fixed date each year. The aim is to further promote a culture of rational investment, gather consensus among all market participants, and create a positive atmosphere where everyone cares for, loves, and pays attention to the legitimate rights and interests of small and medium investors. This will help the concept of investor protection to take root in people's hearts and become a conscious action for all.

Caring for investors, working together for action - Beware of illegal stock recommendation activities under the guise of 'investor education'.

The China Securities Regulatory Commission has established the "5.15 National Investor Protection Promotion Day" to conduct activities nationwide on a fixed date each year, further advocating a rational investment culture, gathering consensus from all market participants, and creating a good atmosphere where everyone cares for and pays attention to the legitimate rights and interests of small and medium investors. This aims to deeply instill the concept of investor protection in people's hearts, making it a conscious action for everyone.
Beware of illegal stock recommendation activities disguised as "investor education".

In recent years, illegal stock recommendation activities under the guise of "investor education" have increased. On the surface, they seem to promote financial knowledge and teach stock trading techniques, but in reality, they are illegally engaged in securities investment consulting activities, which are highly deceptive and misleading. Criminals promote "investor education" courses to investors through phone calls, adding WeChat friends, etc. The courses include explanations of stock knowledge, market analysis and predictions, teaching stock trading techniques, recommending stocks, and guiding buy and sell points, with prices ranging from hundreds to tens of thousands of yuan. The more expensive courses offer stock recommendation services from "teachers" who provide hands-on guidance through live broadcasts.

The reality is that these "investor education" institutions and their packaged "teachers" do not possess the qualifications or relevant professional capabilities for securities practice. They mostly deceive investors with scripted dialogues, inducing them to purchase courses and follow their guidance. When investors incur losses, there are specific scripts to lure them into continuing to pay for upgraded courses. Some criminals, after investors purchase the "investor education" courses, make them download their stock trading software, open accounts within the software, and transfer funds for trading, following the "teacher's" guidance. However, while it is easy to deposit money, it is difficult to withdraw, making it hard for investors to recover their principal.

Currently, the China Investor Network (www.investor.gov.cn) and the securities and futures investor education bases licensed by the CSRC (the list can be found on the China Investor Network) provide public welfare investment education services to society.

We urge all investors to be vigilant, carefully discern, and stay away from illegal stock recommendation activities disguised as "investor education". If you need securities investment consulting services, please choose securities companies or securities investment consulting institutions that hold a securities investment consulting license (the list can be found in the "Regulatory Objects" section on the CSRC website). If you are harmed by illegal stock recommendation activities, please report to the local securities regulatory bureau or file a complaint with the public security authorities.

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Caring for Investors, Working Together for Action - Interpretation of the New Securities Law

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