Hithink RoyalFlush Information Network Co., a Hangzhou-based firm that provides financial data and facilitates stock trading, has been ordered by China's market regulator to stop accepting new clients for its investment advisory service for a period of three months.
The company's live streaming operations did not comply with securities regulations. Influencers on the platform were found to be offering investment advice without the necessary licenses and were making implicit stock recommendations during their live streaming sessions.
As a result, the China Securities Regulatory Commission imposed penalties on the firm.