Financial Associated Press Highlights “White-Hair Stock God”: Suspected of “Round-tripping Cross-border Bill Puffing,” Investors Need to Beware of Information Backflow

June 9: Mainstream Chinese media outlet Caixin—operated by the Shanghai Newspaper Industry Group, which has full control over it—published an article today warning about the overseas influence of a figure dubbed the “White-Hair Stock God” named Serenity on the A-share market’s small and mid-cap stocks, which have been seeing steady gains. The article highlights controversies over Serenity’s cross-border stock promotion activities and alleged market manipulation. It raises alarms about whether Serenity has a hidden agenda pushing stocks on overseas social media platforms, with concerns about possible information backflow. The piece explains that if someone like Serenity—whose true identity could be a domestic team or individual—promotes stocks on overseas social media, then directs followers to Chinese platforms like Weibo, WeChat groups, or Xueqiu to spread info, drawing retail investors to buy and drive up prices, this would be a malicious “export-to-domestic” cross-border stock promotion scheme. This tactic is suspected of evading domestic regulatory rules, colluding with funds or listed company major shareholders to inflate stock prices and siphon off benefits, ultimately harming retail investors. A key unresolved point is Serenity’s unconfirmed identity: is the figure a Chinese national promoting stocks abroad, or has they partnered with domestic institutions or groups? More verification is needed right now. There are two possible scenarios: if Serenity is just a foreign blogger focused on industry analysis whose strong performance has been mythologized by some A-share speculators as a “can’t-miss tipster,” that points to excessive speculative activity in certain A-share small and mid-cap stocks. But if it’s the other case, authorities need to be extremely vigilant. Under China’s Securities Law, any individual or entity that offers securities investment advice to investors for direct or indirect profit without approval from the China Securities Regulatory Commission (CSRC) or proper securities advisory qualifications is engaging in illegal stock promotion. While overseas parties using cross-border influence to impact the A-share market create major enforcement challenges, if Serenity is being paid by relevant domestic parties to promote stocks, even if their servers and accounts are based overseas, Chinese regulators still have jurisdiction over any consequences in the A-share market.