[Epoch Times January 04, 2022](Interview by Epoch Times reporter Li Xin’an) The Chinese Communist Party’s Internet financial market continues to thunder and crises. Recently, the Central Bank of the Communist Party of China and other seven departments have come up with online marketing regulations. Expert analysis believes that the CCP has cleared its responsibilities and shifted conflicts by purging and cracking down on celebrities and other marketing personnel.
On December 31, 2021, the People’s Bank of China’s website reported that the People’s Bank of China, the Ministry of Industry and Information Technology, the State Cyberspace Administration of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the Administration of Foreign Exchange and the Intellectual Property Office drafted the “Administrative Measures for Online Marketing of Financial Products ( Draft for Solicitation of Opinions)”, which includes chapters on marketing promotion, marketing code of conduct, marketing cooperation code of conduct, supervision and management, etc.
The regulations stipulate that no institution or individual may provide online marketing services for illegal financial activities, including but not limited to illegal fund-raising, illegal securities issuance, illegal lending, illegal stock recommendation, virtual currency trading, etc. It is forbidden to market private equity financial products to unspecified objects via the Internet.
Marketers who market financial products through live broadcasts, self-media accounts, Internet groups, etc., “should be employees of financial institutions and have relevant financial qualifications.”
The regulations stated that “it is not allowed to use the name or image of academic institutions, industry associations, or professionals for recommendation or certification.” “It is not permitted to use the name or image of performing arts stars for recommendation or certification.”
In China, there are many types of financial products endorsed by celebrities. In April 2021, the China Banking and Insurance Regulatory Commission issued “Reminders on Beware of the Risks of Financial Products Endorsed by Stars”, mentioning five common patterns: one is to endorse P2P platforms; the other is to endorse products suspected of illegal fund-raising; and the third is for Internet financial platforms. Endorsement; the fourth is for financial products and platform platforms; the fifth is for a certain type of product or the overall brand endorsement of bancassurance institutions, such as celebrities serving as bank credit card promotion ambassadors or publicity ambassadors.
For example, Yuquan has successfully endorsed the loan treasure. In the summer of 2016, Liaodaibao platform began to experience a large area of unpaid thunder. Some people questioned whether Yu Quan, the spokesperson of Bordaibao, was suspected of making false propaganda for Bordaibao? But so far no one has come to bear the responsibility.
On November 28, 2018, singer Chen Yufan from the Yuquan group was arrested for taking drugs. The Internet Financial News Center once reported that Yu Quan ceased to serve as a spokesperson in 2017. After losing the star power of Yuquan, “the promotion speed of Bordaibao is slowing down, and the speed of user growth is also slowing down.”
In recent years, with the development and application of information technologies such as big data and cloud computing, the Internet has become an important channel for the marketing of financial products. There are many types of Internet financial products, including online fundraising, online loans, online securities, digital currencies, and so on.
Among them, the P2P thunderstorm has a far-reaching impact, spawning a large number of financial refugees. P2P online loans have grown savagely in China. During the peak period, there were about 5,000 operating platforms. Until the repayment of large-scale platforms was overdue, there was a thunderstorm in 2018.
From 2007, China’s first P2P online loan “PaiPaiDai” was established in Shanghai, until the end of P2P clearing at the end of 2020, it took only 13 years. According to the data of “Online Loan Home”, as of the end of 2015, the cumulative transaction volume of online loans exceeded one trillion yuan, involving about 50 million investors.
Before P2P was “retired and returned to zero” at the end of 2020, Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, once publicly stated that online lending platforms “there are still more than 800 billion yuan from lenders that have not been recovered.”
Borrower Wang Chengyong invested more than 3 million yuan in the platform of Boraidaibao. After five years of overdue, he could not return the payment, and the borrowers disappeared collectively. He started a marathon-style litigation, and also helped friends in need to defend their rights, and was even forced to fight on a hunger strike at one time.
Wang Chengyong told reporters a few days ago that few people can persist in defending their rights. Although he successfully reported the case in Dongguan, the progress of the police investigation after the case was opened is very slow and very slow. Up to now, there is still no statement.
“Basically no one gets the money, and the government doesn’t act.” He believes that the seven departments have no substantive measures, no effective results, and meaningless. “They are all very nonsense.”
For example, regarding the prohibition of celebrities from endorsing financial products, Wang Chengyong said that this is not news. This rule was introduced last year. “After Borrowing Bao burst into thunder, the celebrities have long been gone, and no one will hold them accountable.”
He believes that in addition to the celebrity endorsement effect, it is the government’s support that moves investors even more. The actual operation is that these financial platforms have some relationship with government departments.
Wang Chengyong once went to Chengdu to report the case, but the police refused to open the case. He revealed that Jidaibao is related to certain officials of the Sichuan Provincial Party Committee and the Chengdu Municipal Committee and City Government, because the move of Jidaibao from Beijing to Chengdu was the result of the Sichuan government’s investment promotion.
Public information shows that in September 2018, Jidaibao Company moved from Beijing to Chengdu.
“Because the Sichuan government hopes to attract investment and find some big-name companies in the past, Jiuding Group uses a fund license as a lever to place this fund company in Chengdu, but its subordinate loan treasure will also come over.” Wang Chengyong believes that Chengdu accepts There must be an interest swap in lending. “This is a place where there is no rule of law.”
CCP clears responsibility for cracking down on salespeople such as celebrities
Xie Tian, a tenured professor at the Aiken School of Business at the University of South Carolina in the United States, said to The Epoch Times that the CCP’s introduction of online financial product management measures at this time was due to problems in the online financial market, and wealth management products exploded one by one.
“Hengda’s wealth management products are also exploding. Now the entire Chinese financial market and the real estate market are experiencing thunder-explosive problems. Now the CCP suppresses it in this way and prevents people from speculating too much. It is a way of defuse (demolition). If it gets worse, it can’t be cleaned up, and it dare not let this phenomenon appear. It should be out of this consideration.” He said.
Xie Tian pointed out that China is not only network wealth management products, including those on local government investment platforms and wealth management products issued by the Bank of China. It stands to reason that investment should be separated from savings. In fact, there are government endorsements.
He analyzed, “The CCP now wants to shed its responsibilities and use this to purge and crack down. Many celebrities who sell financial products through the media, Internet groups or other channels actually sell more and more. The common people think that the government is behind, and when the thunder explodes, the anger will also be transferred to the government.”
Xie Tian believes that financial products do need a management method, such as a license to sell financial products in the United States; but the CCP is indeed suppressing these celebrities, professionals, or appearing in the form of academic institutions.
“Isn’t the CCP now suppressing celebrity live broadcasts? It’s attacking all industries one by one. Those celebrity endorsements, some products endorsed by marketers, including these financial products. The CCP is doing this for the purpose of suppression. .”He said.
It is worth noting that since 2019, China has banned pure trading and production of cryptocurrencies. The Central Bank of the Communist Party of China issued a document stating that cryptocurrency transactions such as Bitcoin “undermined the economic and financial order”, “facilitated criminal activities such as money laundering, illegal fund-raising, and fraud”, and endangered citizens’ property security.
At the same time, the CCP has a smooth path to develop its own national currency, and it has launched the digital RMB e-CNY.
Xie Tian said that in overseas, real virtual currency and digital currency are not legal currencies, but there is no legislation or laws that stipulate that they are illegal. If they are not illegal or legal, such as Bitcoin (BTC) and Ethereum (ETH) There are a lot of people investing, which is open and legal.
“Because the real purpose of digital currency is to bypass the central bank and bypass the government’s currency issuance mechanism. It is an independent currency system. As for China, the CCP is controlling these things. It only allows people to buy China’s own digital trial. Currency.” he said.
Editor in charge: Fang Xiao#
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