China Targets AI-Generated Misinformation, Illegal Stock Tips in New Cleanup
By Quan Yue and Denise Jia
China’s cyberspace and securities regulators said on Friday they had shut down and penalized a batch of online accounts for spreading false information and illegally promoting stocks, as part of a continuing crackdown on market rumors.
The Cyberspace Administration of China, working with the China Securities Regulatory Commission, said the action targeted accounts that fabricated policies, distorted public disclosures, used AI to generate false content or lured investors with illegal stock tips.
Regulators said misinformation related to capital markets has become increasingly fragmented and emotionally charged, with covert tactics that disrupt market expectations and mislead investor decisions.
According to the cases released, some accounts fabricated regulatory policies or claimed to possess “inside information.” These accounts from WeChat and Weibo were found to have spread false IPO policy claims or disseminate inaccurate stock index futures information.
Other accounts were accused of aggregating and hyping unverified negative information to undermine confidence in listed companies and financial institutions. Several accounts were cited for misinterpreting ownership structures and financial statements, while others repeatedly published rumor-based content under the guise of “exclusive disclosures.”
Regulators also flagged the growing use of artificial intelligence to mass-produce false market information. Several accounts on Baidu’s content platforms were found to have used AI-generated articles with sensational headlines to attack regulatory policies and stir negative sentiment among investors.
On short-video platforms, some accounts sought traffic by repeatedly predicting market movements. Regulators cited several Douyin accounts for using provocative or suggestive language to forecast stock market rises and falls, fueling speculation and emotional reactions.
Douyin said on Dec. 16 it had introduced a trial code of conduct for financial content, requiring creators to obtain professional credentials before publishing specialized market analysis and strengthening rules on content management and enforcement.
Authorities also moved against accounts engaged in illegal stock recommendation schemes. Some WeChat and Kuaishou accounts were accused of showcasing chat records and profit screenshots to imply guaranteed returns and encourage followers to buy specific stocks.
The securities regulator warned that fabricating or spreading false capital market information undermines market stability and will be punished according to law, urging investors to improve risk awareness and avoid believing or spreading unverified claims.
Contact reporter Denise Jia (huijuanjia@caixin.com)
caixinglobal.com is the English-language online news portal of Chinese financial and business news media group Caixin. Global Neighbours is authorized to reprint this article.
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