China Suspends Popular Trading Platform From Adding New Clients
The regulator criticized the company’s insufficient compliance control when collaborating with securities companies to provide investment consulting services.
Photographer: AFP/Getty ImagesChina’s market watchdog ordered Hithink RoyalFlush Information Network Co. to suspend its investment advisory service unit from adding new clients for three months as its live streaming business failed to comply with the securities rules.
The Hangzhou-based financial data and software company, which also enables stock trading in China, was being penalized partly because some influencers on its platform were offering investment advice without the required licenses, the company said in an exchange filing citing the disciplinary note from the China Securities Regulatory Commission. Those influencers also gave implicit recommendation of individual stocks during live streaming.