China Bans Brokers From Hiring Influencers, Live Streaming
- Push comes as Beijing pursues a more ‘benign’ online world
- China’s brokerages face growing competition as markets open
Source: AFP/Getty Images
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Chinese regulators banned brokerages from hiring social media influencers to attract new customers, turning off the spigot on one of the most popular ways to gain clients in the intensely competitive sector.
The China Securities Regulatory Commission told securities firms on Monday that they would no longer be allowed to acquire customers by working with big influencers who are not licensed brokers, according to a notice dated Oct. 29 that was seen by Bloomberg News. Investment recommendations via live streaming are also banned, the notice said.