Preventing Non Publicity Month | Forms and Policy Boundaries of "Illegal Recommendation of Stocks, Funds, Futures"

Illegal fund recommendation "refers to the business activity of unqualified institutions and individuals providing investment advice on public funds and other investment products recognized by the China Securities Regulatory Commission to investors or clients, and directly or indirectly obtaining economic benefits. Illegal recommendation of stock futures "refers to the activity of unqualified institutions and individuals providing direct or indirect paid consulting services such as securities and futures investment analysis, forecasting, or advice to investors or clients. The behavior pattern of "illegal recommendation of stocks, funds, and futures" mainly includes:

1. Recommend stocks, funds, and futures through live streaming and short videos. It mainly refers to the creation or use of Internet platforms to open live broadcast rooms or release short videos, and directly or indirectly recommend stock fund futures in the name of "anchor", "broadcaster", "blogger", "circle owner", etc.

2. Recommend stocks, funds, and futures on Weibo and WeChat. Mainly refers to recommending stocks, funds, and futures directly or indirectly under the names of "stock gods," "big Vs," "teachers," etc. through social networking tools such as Weibo and WeChat.

3. Software recommends stocks, funds, and futures. Mainly refers to the sale or provision of recommended stock, fund, and futures software, providing investment analysis opinions, selection recommendations, buying and selling timing suggestions, and predicting price trends for stocks, funds, and futures varieties.

4. Recommend stocks, funds, and futures for training. Mainly refers to recommending stock, fund, and futures directly or indirectly through promoting courses such as "financial management," "investor education," "financial education," "stock trading," and "buying foundations," and organizing investment lectures, reports, analysis meetings, and other methods.

According to the relevant provisions of the Fund Law, the act of "illegally recommending funds (public offerings)" is suspected of engaging in fund service business without authorization. According to the relevant provisions of the Securities Law, the act of "illegal recommendation of stocks" is suspected of illegal operation of securities business. According to the relevant provisions of the Futures Trading Management Regulations, the act of "illegal recommendation of futures" is suspected of illegal operation of futures business.

Investors should be wary of illegal recommendations of stocks, funds, and futures, choose legitimate institutions during the investment process, adhere to rational investment, and enhance their risk prevention awareness and self-protection ability to guard against being deceived.