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5•15 National Investor Protection Public Awareness Day
1. When it comes to investment and financial management, rationality is key.
2. The stock market carries risks; proceed with caution when entering the market.
3. A correct investment philosophy leads to a successful investing life.
4. Act within your means, think rationally, make decisions cautiously, and be a qualified investor.
5. Understand the market, invest rationally, and practice value investing.
6. It’s unwise to blindly chase new stocks—there’s likely something fishy going on with the market rumors.
7. Crack down on illegal securities activities and enhance your awareness of self-protection.
8. Be familiar with and master the risk characteristics of various securities, and objectively assess your risk tolerance.
9. The “Five Don’ts” for Preventing Illegal Securities Activities: First, don’t harbor the fantasy of getting rich overnight; second, don’t readily believe in hearsay or rumors; third, don’t fall for persuasive marketing tactics via phone or the internet; fourth, don’t be misled by superficial appearances; and fifth, don’t easily remit money to others.
10. The “Five Essentials” for Preventing Illegal Securities Activities: First, learn the relevant laws and regulations; second, acquire knowledge about securities investment; third, maintain a rational investment mindset; fourth, seek advice from professionals; and fifth, actively curb illegal securities activities.
Q: I’d like to make some investments in stocks or futures. Which institutions should I go through? And what channels can I use to verify that these institutions aren’t scam companies?
Answer: If investors wish to engage in stock or futures investments, they should choose a licensed securities firm or futures company and, after conducting the necessary risk assessment, select an investment project or product that suits their individual needs. Investors can verify the credentials of these licensed securities firms and futures companies by visiting the websites of the China Securities Regulatory Commission (www.csrc.gov.cn), the Securities Association of China (www.sac.net), or the China Futures Association (www.cfachina.org). Notably, the websites of the Securities Association of China and the China Futures Association not only provide information on licensed institutions but also list the official websites of these firms. When downloading trading software or browsing the online information of licensed institutions, investors should always access these sites through their official websites to avoid falling victim to phishing websites or other illegal sites that could lead to information leaks, password theft, or financial scams.
Q: Recently, I’ve been receiving frequent phone calls from people recommending software that can spot “dark horse stocks.” Can I buy it?
Answer: According to national regulations, only securities companies and securities investment consulting institutions that have been licensed by the China Securities Regulatory Commission (CSRC) and obtained the qualification to provide securities investment advisory services are permitted to sell “stock-picking software” to investors. Investors can check whether the entity selling you “stock-picking software” is a legitimate securities firm by visiting the “Institution Directory” section on the homepage of the CSRC website (www.csrc.gov.cn) or the “Information Disclosure” section on the homepage of the China Securities Industry Association website (www.sac.net.cn). When receiving such phone calls, investors should first thoroughly research the software and the recommending institution before making a cautious purchase.
Moreover, “stock-picking software” is a form of investment advisory service that provides certain advisory information or investment recommendations for your reference when making investment decisions. It’s impossible for such software to consistently identify so-called “dark-horse stocks,” and it certainly cannot guarantee that you’ll always make a profit without any losses. If someone promotes their “stock-picking software” by claiming that it can spot “dark-horse stocks” and assure you that you’ll definitely make money once you start using it, they’re simply trying to deceive you—please don’t fall for their scam.
Q: Recently, a company claiming to specialize in certification exam preparation announced that it will hold an investment networking event at a certain hotel. After the event, they’ll offer stock investment training and long-term online QQ guidance. Should I attend such a training session?
Answer: According to relevant laws and regulations, securities and futures investment consulting refers to the activities undertaken by institutions and their investment consultants engaged in securities and futures investment consulting services—providing investors or clients with direct or indirect paid advisory services such as securities and futures investment analysis, forecasts, or recommendations. These activities take various forms, including providing securities and futures investment consulting services to investors or clients, organizing lectures, seminars, and analytical meetings on securities and futures investment consulting, publishing articles, commentaries, and reports on securities and futures investment consulting in newspapers and periodicals, and delivering securities and futures investment consulting services through public media such as radio and television stations. To engage in securities and futures investment consulting services, one must obtain business authorization from the China Securities Regulatory Commission (CSRC). Without the CSRC’s authorization, no institution or individual may engage in securities and futures investment consulting services.
In recent years, illegal securities investment advisory activities have become increasingly rampant. Particularly in light of the recent improvement in market conditions and the rapid development of internet-based finance, a growing number of novice investors have been entering the market. As a result, unscrupulous individuals have been engaging in illegal securities investment advisory activities under various guises, such as offering investment advice and recommending stocks. These activities take many different forms and employ diverse tactics. Typically, perpetrators set up websites—some even masquerading as securities companies or securities investment advisory firms by using similarly named domains—or leverage interactive platforms like website forums, stock discussion boards, blogs, QQ groups, and other online communities. They also utilize traditional media channels such as television, radio, and newspapers as marketing platforms. By means of false information, exaggerated claims, and promises of high returns, they lure members or clients into joining their services, recommend specific stocks, provide online consultations, or manage clients’ portfolios on their behalf, thereby collecting membership fees or profit-sharing commissions and reaping illicit profits through these illegal securities investment advisory activities.
Training institutions that charge fees for providing so-called stock investment training and offer stock-recommendation services via online QQ guidance are engaging in illegal securities investment advisory activities. If investors come across or receive information from institutions or individuals charging fees for stock recommendations, they should first visit the website of the China Securities Regulatory Commission or the websites of the Securities Association and the Futures Association to check whether the institution or individual holds the appropriate qualifications. Alternatively, they can call the legitimate institution being impersonated to verify the relevant information, thus avoiding being deceived and losing money.
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