Six mainland investment advisers punished within a week, three barred from taking new clients
Regulators said some firms were involved in misleading marketing, advice provided by unlicensed staff and inadequate livestream management. The companies must rectify the issues and submit reports.
The Heilongjiang, Shenzhen, Liaoning and Sichuan offices of the China Securities Regulatory Commission announced measures against six third-party securities investment advisory firms between September 24 and 30. Three were ordered to stop accepting new clients for three months, while the other three were only ordered to rectify their practices.
| Institution | Regulator | Announcement date | Measures |
|---|---|---|---|
| Rongwei Securities (Heilongjiang Rongwei Securities Data Programming Co Ltd) | Heilongjiang CSRC office | September 30 | Ordered to rectify and suspended from accepting new clients for three months; the general manager and two investment advisers were issued warning letters |
| Hexun Information Technology Co Ltd, Shenzhen branch | Shenzhen CSRC office | September 28 | Ordered to rectify and suspended from accepting new clients for three months; the then deputy general manager and compliance officer were issued warning letters |
| Caizidao Information Technology Co Ltd | Liaoning CSRC office | September 24 | Ordered to rectify and suspended from accepting new clients for three months; the general manager was issued a warning letter |
| Sichuan Qiankun Yun Intelligent Technology Co Ltd | Sichuan CSRC office | September 24 | Ordered to rectify |
| Sichuan Da Jue Ce Securities Investment Consulting Co Ltd | Sichuan CSRC office | September 24 | Ordered to rectify |
| Hainan Hong Kong and Macau Information Industry Co Ltd, Chengdu branch (headquartered in Haikou) | Sichuan CSRC office | September 24 | Ordered to rectify |
Self-media platforms emerge as major trouble spot
According to a notice from the Heilongjiang CSRC office, individual advisers at Rongwei Securities used WeChat public accounts that had not been authenticated by the company to conduct business. One adviser also made incautious, unfounded remarks on a WeChat video account, while others directly recommended buying, selling or holding specific securities in public-account articles. Another adviser promoted the past performance of individual stocks during a livestream without pointing out its limitations, while implying that certain stocks were being recommended.
The Shenzhen CSRC office said the Shenzhen branch of Hexun Information used its WeChat public account to make public investment recommendations on individual stocks. Some employees without investment advisory qualifications wrote articles forecasting stock trends while posing as advisers. Part of the investment consultancy work was outsourced to a third-party institution, while repeated changes to the business premises were not reported to the regulator.
Marketing and suitability concerns
The Liaoning CSRC office said Caizidao's marketing and promotional activities involved exaggeration, misleading claims and promises of returns, while some unqualified staff provided investment advice to clients. The company also failed to obtain sufficient information about its clients, leaving some products mismatched with investors' risk tolerance. It sold the same products to different clients at different prices, while some incoming customer-service calls went unanswered or were not properly recorded. A Douyin account also accepted livestream tips.
The Sichuan CSRC office said Qiankun Yun, Da Jue Ce and the Chengdu branch of Hong Kong and Macau Information had all engaged in misleading marketing or provided investment advice without a reasonable basis. They also had inadequate compliance management for online livestreams. Qiankun Yun and Da Jue Ce were additionally found to have deficient record-keeping mechanisms or incomplete livestream records. The three Sichuan firms must submit written rectification reports within 30 days.
What does the suspension of new clients mean?
The decisions issued by the Liaoning and Heilongjiang CSRC offices state that the firms may not sign up new clients during the suspension period, nor conduct investment consultancy business under the guise of “investor education” or other similar labels. After the period ends, they must submit written reports on their rectification, and may accept new clients only after the regulator has checked and approved the results. A director at an investment advisory firm told China Securities Journal that, as the firms must still await approval of their rectification, the actual period during which they cannot accept new clients is often longer than the period specified in the decisions.
Penalties continue to rise this year
This was not an isolated batch of penalties. According to mid-August figures compiled by CLS, 21 investment consultancy firms, including branches, had received 24 penalties this year, with at least eight barred from accepting new clients for between three and 12 months. Jiemian News counted more than 100 penalties across the investment advisory industry in 2025. During the year, the investment consultancy licences of Zhongfang Xinfu and Qingdao Damo Securities Investment were revoked separately.
Separately, the Measures for the Administration of Online Marketing of Financial Products, jointly issued by eight mainland authorities, took effect on September 30. The rules prohibit the use of simulated performance and other practices that could mislead investors.