China Fines Social Media Influencer $12 Million for Stock Market Manipulation

Chinese Market Influencer Hit with $12 Million Fine for Manipulation Scheme

Chinese authorities have levied a hefty fine of 83 million yuan (approximately $12 million) against social media financial influencer Jin Yongrong for manipulating stock prices, marking another significant step in Beijing’s intensifying campaign against market misconduct.

The Zhejiang bureau of the China Securities Regulatory Commission (CSRC) announced on Monday that Jin had orchestrated a classic “pump and dump” scheme over a seven-month period from September 2024 to April 2025. According to regulators, Jin used multiple brokerage accounts to acquire shares in targeted companies before promoting these same stocks to his followers on Xueqiu, a popular Chinese investment social media platform with millions of users.

After driving up prices through his recommendations, Jin would then sell his holdings at a profit, leaving followers who acted on his advice potentially holding overvalued shares. The regulatory filing did not specify which stocks were involved in the manipulation scheme or the total profits Jin had accumulated through these activities.

This enforcement action represents one of the largest fines imposed on an individual for market manipulation in China’s recent regulatory history. The severity of the penalty underscores the government’s determination to clean up market practices that undermine investor confidence.

The case highlights the growing concern among Chinese regulators about the outsized influence that social media personalities can wield in financial markets. Platforms like Xueqiu have emerged as powerful forces in China’s investment landscape, particularly among retail investors who make up approximately 80% of trading volume in Chinese markets.

“This case demonstrates how traditional market manipulation tactics have evolved in the social media era,” said Zhang Wei, a securities law professor at Peking University. “Regulators worldwide are struggling to adapt their enforcement frameworks to address these new challenges.”

China’s crackdown on market manipulation comes amid broader efforts to reform its financial markets and attract international investment. The country has been gradually opening its capital markets to foreign investors, who often cite concerns about market integrity and transparency as barriers to greater participation.

The CSRC has intensified its enforcement actions in recent years, targeting various forms of market misconduct. Last year alone, the regulator issued penalties in over 300 cases of market manipulation, insider trading, and disclosure violations, representing a 40% increase from the previous year.

Chinese President Xi Jinping has repeatedly emphasized the importance of financial stability and risk prevention, with market manipulation identified as a significant threat to orderly markets. This focus has translated into stronger regulatory oversight and harsher penalties for violations.

Market experts note that the Jin Yongrong case may serve as a warning to other influencers who have amassed large followings on investment platforms.

“The fine is clearly meant to send a message,” said Liu Ying, an analyst at a Shanghai-based securities firm. “With retail investors so active in our markets, the potential for harm from this type of manipulation is substantial.”

The case also raises questions about platform responsibility. Xueqiu and similar investment social networks have implemented various verification systems and disclosure requirements, but critics argue these measures remain insufficient to prevent abuse.

For ordinary Chinese investors, who have experienced significant market volatility in recent years, the enforcement action may provide some reassurance that authorities are addressing predatory behaviors.

“This level of enforcement is necessary to maintain market integrity,” commented Chen Hongwei, a retail investor in Hangzhou. “Many people trust these online experts with their life savings, so there should be consequences when that trust is abused.”

As Chinese markets continue to mature, regulators face the ongoing challenge of balancing innovation with investor protection, particularly as technology continues to transform how investment advice is distributed and consumed.