Weibo wipes out inventory buying and selling accounts with tens of millions of followers

One among China’s largest social media companies not too long ago “banned” accounts “closed” shares with tens of millions of followers. The transfer comes after a regulatory crackdown, Beijing known as for the purge of content material deemed dangerous to the financial system.

Weibo, a Twitter-like social networking platform with about half a billion customers, has locked not less than 52 accounts for violating new laws on communication within the financial and monetary sectors. Amongst them, essentially the most well-known account is GuSheQu or “Inventory Funding Neighborhood” with 3.25 million followers.

The chat rooms of those accounts typically cost followers, who alternate them with “ideas” for investing in shares. One among them gave directions on the right way to commerce the Shanghai Composite Index, recommending buyers in Could to “purchase strongly” at 3,482 to three,488 factors.

Weibo wipes out stock accounts with millions of followers - Photo 1.

The actions of the Shanghai Composite lately.

On March 12, one other account named “Inventory As much as the Sky” shared that shares of Shanghai-listed aluminum sheet producer – Henan Mingtai Al Industrial Co., will enhance 98% since this content material was posted. Nonetheless, 2 of the opposite shares that this account “closed” fell greater than 10%.

In the meantime, another “banned” accounts have commented on delicate macro insurance policies, reminiscent of China’s inhabitants. One other account posted photos of quotes from overseas media articles, together with these of Bloomberg.

Weibo’s newest transfer has revealed particulars about the kind of content material that Chinese language regulators say will probably be dangerous to the financial system. Introduced final Friday by the Our on-line world Administration, the marketing campaign asks buying and selling websites and platforms to take away damaging content material about monetary markets, misinterpretations of insurance policies and knowledge. Chinese language financial system.

In response to the above announcement, the brand new regulation was launched for the aim of constructing a “benign” social community setting for the essay. Accordingly, this may create situations for the sustainable and wholesome growth of China’s financial system and society. In June, state media reported that regulators have been against analysts routinely setting targets or forecasting the efficiency of a selected inventory index.

Media firms in China typically have content material that impacts the market, when hiding some damaging info. When the mainland inventory market plunged in March, a search on Weibo for “inventory market” turned up no outcomes. In 2019, posts about the specter of US tariffs on Chinese language exports have been additionally faraway from this social community.

Chi Lan

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