“Resist illegal securities and futures fund activities,

Protect the legal rights of investors

——2024 Illegal Securities and Futures Prevention Campaign Month

Currently, illegal securities and futures activities are widespread. These activities often involve organized groups or professional operators, possessing strong deceptive and misleading characteristics. They severely harm investors' interests and disrupt the order of the capital market. According to the requirements of the Tibetan Securities Regulatory Bureau and the Tibetan Securities Industry Association, Haisco is required to...May–June 2024Organize and carry out a campaign for the month of anti-illegal securities and futures promotion, with the theme "Resisting Illegal Securities and Futures Fund Activities, Protecting Investors' Legal Rights and Interests".

1. Main characteristics of illegal securities and futures activities

(1) Crowd-related type

Illegal securities and futures activities are planned and carefully organized. Criminals exploit the desire of many people to become rich quickly, creating promising "financial opportunities" to deceive them.

(2) Concealment

Illegal intermediary agencies use hidden methods. Most of them operate under the names of “investment consulting firms”, “property brokerage companies”, “foreign capital companies” or “hidden investment company representative offices in China”. Without approval from legal authorities, they establish a large sales network through sales staff, find downstream customers, and illegally trade or act as agents in the buying and selling of unlisted company stocks for the public.

(3) Deceptive Nature

Some private companies fabricate false information, using claims such as upcoming listing domestically or internationally or government approval for stock issuance as bait, under the guise of seeking high returns. They sell so-called “original shares” and use illegal methods to trick people into buying stocks, while in reality, most companies cannot list overseas. Some illegal securities investment consulting agencies or individuals often charge memberships, deposits, or consultation fees from investors under the pretext of recommending stocks, or demand fees from clients in exchange for a share of the profits, thereby stealing money.

(4) High recurrence rate

Illegal securities and futures activities often offer huge profits or no profit at all. Thus, driven by high returns, criminals are prone to take risks. After being investigated by relevant authorities, they immediately find another location to resume their illegal activities.

2. Focus on preventing illegal securities and futures activities

Illegal securities and futures activities include off-exchange financing, illegal stock recommendations, stock market scams, illegal stock issuance, illegal futures trading,违规 fund promotion, illegal fundraising, impersonation of securities and futures fund institutions and employees, etc. Among these, off-exchange financing, illegal stock recommendations, stock market scams, illegal stock issuance, and illegal futures trading are key areas for preventing illegal securities and futures activities.

(1) How to prevent off-exchange margin trading

1.Reject off-market financing

“Off-exchange margin trading” institutions do not have the qualifications to operate securities and futures businesses. Investors who need margin financing services must seek them out from legitimate securities operating institutions.

2.Be cautious about "virtual disk" transactions

Some off-market financing even use "virtual accounts" and promise high returns and profits. Such activities are suspected of engaging in fraud and other illegal activities.

3.Report the clue immediately if discovered

When assets are damaged due to illegal actions, such as being deceived through "over-the-counter financing," please report the incident to the local securities regulatory authority or public security department immediately.

(II) How to prevent illegal stock recommendation

1.Be vigilant against unknown calls

Investors receive calls or texts from strangers,QQCommunication and networking tools such as WeChat can connect with you. When receiving sales or stock recommendation services, be highly vigilant and do not trust the other party's words easily.

2.Don't transfer money easily

Do not easily follow online scams, transfer money for investment, and especially do not continue to listen to the other party's advice after losing money, and repeatedly send funds to them.

(3) How to prevent fake investors in the stock market

1.Independent thinking and decision-making

Independent thinking and decision-making is the investment strategy that investors use in the securities market. Investors, especially small and medium-sized investors, should avoid blindly following the opinions of TV experts and investing in a trend without analysis.

2.Experts may not be accurate

When experts recommend stocks, predict price levels, and estimate limit up points through television, Weibo, blogs, etc., it is essential to be vigilant and critical. Analyze the experts' investment advice objectively, use your own subjective judgment, and avoid falling into the traps of illegal actors.

3.Strengthen self-study

In the context of a noisy investment environment filled with messages and experts' hype, investors should maintain a calm mindset, learn more, observe more, and think more. Experts' advice can be used as reference, but they should not be followed without any doubt or skepticism.

(4) How to prevent illegal stock issuance

1.Investors should choose securities that have been approved for public issuance by the China Securities Regulatory Commission or departments authorized by the State Council as investment targets.

2.When investors encounter intermediary institutions introducing securities services, they should first check whether the institutions have been approved by the Securities Regulatory Commission. If they have not received such approval, they are engaged in illegal securities activities.

3.Investors should be cautious before making decisions and can consult with the China Securities Regulatory Commission and its local offices, legal securities operating institutions, or industry associations.

(5) How to Prevent Illegal Futures Trading

1.Choose a legitimate institution

Legal institutions with the qualifications for securities and futures business can be found on the websites of the China Securities Regulatory Commission, the China Securities Association, and the China Futures Association. If any clues are found regarding fake securities and futures institutions engaging in illegal activities, reports should be made to the public security authorities or to the local securities regulatory bureau.

2.Be vigilant against high returns

Some trading venues, under the guise of spot transactions for oil, gold, silver, etc., persuade customers to trade in the manner of futures trading with high returns. Some even trick investors into frequent buying and selling to earn large fees. Some even engage in betting transactions with investors, causing losses for them.

3.Understand the trading rules

Before engaging in investment transactions, it is essential to clearly understand the trading rules and investment risks to avoid being deceived and suffering losses.