Chinese talk show host fined US$13.5 million for misleading small equity investors
China Securities Regulatory Commission penalises well-known TV host Liao Yingqiang for manipulating the market and pocketing ill-gotten gains
Authorities on the mainland are targeting unscrupulous celebrities who profit from stock tips offered to small investors.
On Monday, Liao Yingqiang, 48, a stock market television talk show host, was fined 86.2 million yuan (US$13.5 million) – double his ill-gotten profits – by the China Securities Regulatory Commission after he was found to have unduly influenced the share prices of 39 listed companies.
The penalty provides yet another snapshot of the country’s arcane stock market where millions of retail investors habitually chase rumours and stock tips to make their investment decisions, only to find that they have incurred heavy losses.
The securities regulator said in a statement that Liao used TV shows and social media to promote shares of certain companies before taking profits as he sold shares in these firms.
A buying spree surrounding a stock normally drives up share prices, creating an easy exit for existing shareholders to lock up gains.
