Summary of the Core Content
This news article discusses a post-00s fund blogger named Xiaoyang, who gained nearly 200,000 followers on social media platforms by showcasing the high returns of her funds during favorable market conditions. She then directed these followers to her private WeChat groups, where she monetized through donations and paid content. She also secretly recommended stocks and encouraged followers to open accounts to earn commissions for herself. However, when the market declined in July, her earnings plummeted, and fans realized that she was recommending stocks without the necessary qualifications, leading to numerous complaints. As a result, both her WeChat account and public account have been suspended.
Detailed Analysis
The Three Steps of Fan Acquisition and Monetization
1. Attracting Fans by Showcasing Returns: From April to June this year, the A-share technology sector performed well, and Xiaoyang posted screenshots of her fund holdings and returns on platforms like REDnote, attracting novice investors interested in making money.
2. Private Group Guidance: Fans who frequently liked and commented on her posts were invited to join her “best friends group,” where she was referred to as “X Bao,” creating a sense of intimacy and turning them into followers eager to earn money with her help.
3. Monetization: Once in the group, she started collecting donations (e.g., demanding a screenshot of a donation of 188 yuan as a condition for remaining) and offering paid content (18.88 yuan per article), and even requiring fans to like and comment on her posts on social media. Some fans donated a total of 4,200 yuan, with one even transferring 888 yuan on her birthday.
Moving from Fund Sharing to Stock Recommendations: Building Trust and Starting to Profit from Investors
Initially, Xiaoyang only shared information about funds. As market conditions were favorable and her followers made money, they began to trust her more. She then created a “core fan group” accessible only to the top 25% of donors. Within this group, she started recommending individual stocks and sharing her own stock holdings, even providing “operation guides” for buying and selling. The problem was that she lacked the necessary qualifications to provide investment advice, making her stock recommendations unauthorized. A fan mentioned that Xiaoyang’s assistant, Liu Mei, suggested it was similar to getting direct trading instructions, which increased fans’ dependence on her.
Earning Commissions by Encouraging Account Openings
In addition to donations and paid content, Xiaoyang also earned commissions by helping fans open brokerage accounts. She promised a 400 yuan commission for each valid account (with assets of at least 10,000 yuan and at least one transaction in the past 30 days). She used her assistant, Liu Mei, to help with account openings, and only those who provided proof of account activation could join the group. However, the brokerage firm, Dongguan Securities, explicitly prohibited such commissions. Liu Mei claimed she was only responsible for making recommendations and knew nothing about the commission scheme. The brokerage is now conducting an internal investigation, but Xiaoyang is unreachable.
Legal Issues Involved
- Unauthorized Stock Recommendations: Without the required qualifications, Xiaoyang’s stock recommendations violated China’s Securities Law, which could result in the confiscation of illegal gains, fines, and in severe cases, imprisonment.
- Illegal Account Opening: As she wasn’t a licensed broker but helped open accounts for commissions, she was engaging in “illegal securities customer solicitation,” violating the Securities Brokerage Business Management Regulations, potentially subjecting both her and the brokerage to penalties.
Why Did Fans Fall for the Scam?
There were several factors contributing to fans’ susceptibility:
- Favorable Market Conditions: The strong performance of technology stocks from April to June made Xiaoyang’s high returns seem attractive, leading some to invest significant amounts (up to 200,000 yuan).
- An Intimate Image: Xiaoyang created an image of being a “only child from Jiangsu, Zhejiang, or Shanghai” and a current college student, which made fans feel protected and less cautious.
- Group Pressure: The private group’s reward system and the threat of being excluded if they didn’t contribute financially pressured fans into paying and donating.
When the market turned down in July, Xiaoyang’s fund returns dropped by about 15%, and fans realized they were not buying investment information but supporting her earnings-driven persona. This highlights the danger of relying on bloggers who showcase their returns online—many may be unqualified and use deceptive tactics to attract followers. Investors should rely on their own knowledge and not easily believe promises of easy profits.