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China’s Market Watchdogs Step In To Curb Investment Influencers

Photo by Yiran Ding / Unsplash

Chinese regulators are tightening oversight of influencer-driven investment promotions as concerns grow over market volatility tied to an artificial intelligence stock rally, according to market reports.

The China Securities Regulatory Commission recently penalized a fund manager for paying unqualified online influencers to promote risky products, saying the practice misled investors with unsuitable risk profiles.

Officials signaled broader unease as millions of new retail investors poured into tech-linked shares in January.

Smaller and mid-sized stocks tied to AI, semiconductors, and advanced manufacturing have surged, far outpacing the broader market. Analysts say the rush reflects limited alternatives as property prices fall and bond yields remain low, rather than strong company fundamentals.

Authorities have also acted against market manipulation, banning prominent stock influencers and raising margin trading requirements to curb speculation. While Beijing continues to back the stock market to advance its high-tech ambitions, regulators are trying to rein in excesses and prevent sharp swings that could undermine long-term investor confidence.

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