Recently, a popular financial blogger known as Da Lan, who had millions of followers, was banned from Douyin after his investment advice led to significant losses for many. Despite his downfall, the surge of self-proclaimed stock market “gods” in live-streaming rooms has not ceased, with these newcomers representing themselves as masters of the market. But what lies beneath the façade of these so-called “gods”?
Since October, the fluctuating A-share market has made stock-related content exceedingly popular on short video platforms. Some bloggers have set up blackboards to passionately discuss market trends while presenting themselves as economic “experts.” Others, like a housewife claiming to have helped her husband recover from a 3 million yuan loss in just one day, boast about their supposed earnings. There are even individuals asserting they are shareholders of large agricultural groups with over two decades of market experience, teaching others how to read candlestick charts to “spot a bull market.”
A dive into these live-streams reveals a chaotic scene. On the evening of October 21, the search for “stock market” on a popular platform flooded with various predictions and trading instructions. One blogger declared, “Who else besides me is fully invested at the bottom?” while showcasing their impressive “real-world results” and claiming a 70% profit on their main account this year. Recommendations for quick trades flowed freely, with pitches like, “What are you waiting for, newbies? Buy in at the tail-end of the first big drop and sell the next day; it’s your only chance!”
These self-styled experts vied for attention with phrases like, “Buy low, sell high; that’s how you win,” or dramatic assertions like “I’ve had success with almost all my stocks.” Such exaggerated claims drew a large audience, with some streams hitting the top 50 in both viewership and popularity during prime time.
“Precise” predictions have become the selling point for these bloggers. In one live-stream, a presenter earnestly operated a so-called secret calculator, suggesting it could predict not just the market movements but how much it would rise or fall the next day.
Notably, a stream by a blogger named “Financial Mai Mou Ji” attracted around 50,000 viewers who were given detailed trading strategies in no uncertain terms.
However, the term “black talk” comes into play when considering the ways these individuals attract investors without directly recommending stocks. The Chinese regulatory framework mandates that anyone offering stock investment consultancy must have qualified credentials. Unfortunately, an alarming number of these bloggers—approximately 70% according to our investigation—lack any form of certification or regulatory compliance, which might classify their advice as illegal promotion.
One veteran investor lamented that these influencers understand the allure of quick wealth, often flipping their stances on the market based on daily movements, leading unseasoned traders to potential losses. Many of these bloggers redirect viewers through convoluted “black language” to obscure direct references to specific stocks.
As the night progresses in these streams, multiple bloggers offer “exclusive” trading materials for as little as $0.99, claiming years of insights hidden within. However, those who pay often find themselves funneled into promotional consultations rather than receiving the promised materials.
When engaging with a consultant, responses are often vague, and substantial fees are pushed under various pretexts for more detailed stock recommendations. Many users report that, rather than making profits, they incur significant losses after following such advice.
This cycle of low-cost offerings is merely a marketing tactic. Those in the industry assert that it is an easy route for these brokers to collect fees while leading users back to their platforms for ongoing consultations.
As this troubling trend continues, experts urge caution among investors. The growing number of unqualified individuals broadcasting stock advice can easily mislead the unsuspecting. Observations indicate that platforms do recognize this trend and are taking steps to mitigate illegal activities, including banning accounts and removing unauthorized content.
However, users must remain vigilant, especially when they notice a lack of certified qualifications or the use of sensational promotional language. Advice from seasoned investment professionals suggests that platforms should maintain lists of qualified participants in various fields to ensure compliance with existing regulations. Ultimately, it’s essential for investors to scrutinize the credentials of anyone offering stock advice in live-streaming environments.
