What is a black mouth?

What is a black mouth?

A black mouth is an illegal securities consulting agency or individual. These stock market "black mouths" either use new media such as the Internet to develop members, collect stock recommendation fees and make illegal profits, or make illegal profits by promoting stock recommendation software that "guarantees no loss". Some criminals also defraud investors through mobile phone text messages

The impact of blackmail

Such illegal behavior disrupts the market and not only seriously damages the interests of investors, especially small and medium-sized investors, but also It has seriously hindered the healthy development of the consulting industry and made it difficult for truly law-abiding consulting organizations to conduct business normally. In the long run, the securities consulting industry will fall into a vicious cycle of "bad money driving out good money", which will even affect the pricing mechanism and effectiveness of the securities market.

Heizui’s deceptive methods

The first step: senior members build positions; consulting agencies let their partners build positions first, and then senior members build positions, and at the same time give their partners a boost Sedan. Step 2: The lower-level members lift the sedan; and then notify the lower-level members to buy the stock, which is actually lifting the sedan and receiving the goods. They are usually SMS notifications to buy, and SMS messages are sent in bulk. These junior members bought in at roughly the same time, and the stock price quickly pushed up. At this point, their partners have started shipping. Step 3: Use free calls to send hot stocks as bait to lure retail investors and let them continue to lift the sedan or pick up the goods. At this point, low-level members begin shipping. This is a better consulting agency. General consulting agencies don't care whether you live or die. Another purpose of sending free stock trading is to obtain their contact information in order to persuade them to join the membership, to replenish the low-level members who are constantly losing due to continuous losses, and to replenish the reserve army of sedan bearers. Step 4: Make public comments and recommendations and let off-site funds receive the goods. The relatively low-grade and vicious consulting agencies carry out the second, third and fourth steps at the same time, because China is a T1 operation, and all those chasing highs will be trapped. You can't run away even if you know you have been fooled, you can only watch and wait to die.

Identification of black mouths

The first step is to see whether it is "listed for business". In accordance with the requirements of the "Interim Provisions on the Management of Membership-based Securities Investment Consulting Business", when a membership-based institution conducts membership-based business, it should prominently publicize or announce the full name of the institution, business qualification certificate number, and participating columns in the relevant columns and locations where the business occurs. The name of the practitioner and his/her professional qualification certificate number. If there is no "listed business", its identity is suspicious. The second step is to see if it recruits members from other places. Since members from other places have great difficulties in making complaints, "black mouth consultation" has an opportunity to take advantage of it. In this regard, the "Interim Regulations" have clear prohibitions. Therefore, once a foreign consulting organization or person asks you to become a member, their identity will be very suspicious. The third tip is to see how the contract is signed. First, the format of the contract must be printed uniformly; second, the home page of the contract should state the complaint telephone number, special bank account number, account name, and opening bank; third, the home page of the contract should have an eye-catching risk warning: "The company promises to provide professional services. It does not promise investors to obtain investment income, nor does it agree with investors to share investment income or investment losses" and "the market is risky, so investment needs to be cautious"; fourth, it does not charge consulting service fees from investors before signing a written contract. If there is any discrepancy, investors should link their identity to "black mouth". The fourth trick is to see if he "recommends a dark horse" or is bragging. The "Interim Provisions" prohibit membership-based institutions and personnel from using "dark horse recommendation" and other methods to express or imply that investors will definitely receive investment income when conducting membership-based business, or to solicit business through marketing methods such as "free shares"; to exaggerate or falsely report Conduct false and misleading advertising and marketing activities by recommending stock performance and other methods; or operate directly on behalf of customers, or agree with customers to share investment income or investment losses, etc. Anyone who violates these behaviors is undoubtedly a "black mouth". The fifth tip is to look at its attitude towards handling customer complaints. Regarding customer complaints, "black mouths" often adopt the method of passing the buck. To this end, the "Interim Regulations" clearly stipulate that membership-based institutions should set up specialized departments and personnel to handle customer complaints independently; for complaints received, relevant institutions should handle them before the end of the next month.

Therefore, if your complaint is not handled in a timely manner and the relevant agency is pushing the envelope; or if there is no handling result before the end of the month following your complaint, then it is necessary for you to associate it with "black mouth".

Prevention of black talk

Severely cracking down on "black talk" in the stock market also requires the participation of all parties in society. On the one hand, the securities regulatory authorities need the active cooperation of public security, judicial, information technology, financial institutions, news and publicity and other departments to form a joint force and establish an effective mechanism; on the other hand, the public media must also strengthen the dissemination of securities investment consultation information. Strengthen screening and strictly control securities consulting advertisements. Investors should also realize the essence of stock market investment, give up the dream of "getting rich overnight", and clearly distinguish the authenticity of securities investment consulting institutions.

Edit this paragraph’s representative of Heizui

The number one black stock commentator on Heizui: Ruan Kaili of Tianli. Ruan Kaili, whose original name is Zhao Xiaoyun. The second most black-mouthed stock review: Tang Yong of Chongqing Bogutongjin. The third most black-tongued stock review: Qu Zhuo of Huading Finance. The fourth most black-tongued stock review: Wang Jizhou of Shandong Shenguang. The fifth black-mouthed stock review: Xinding Shenghei. The sixth black stock review: Sanyuan Consulting’s black mouth stock review The seventh black: Gu Laixin’s black mouth stock review The eighth black: Huizheng Finance’s black mouth stock review The ninth black: New Rand’s black mouth stock review The tenth black: Long and short front and Rongwei Chuangwei

Punishment for blackmail

On December 12, 2005, the China Securities Regulatory Commission issued the "Interim Regulations on the Management of Membership-based Securities Investment Consulting Business", which listed 13 High voltage lines. Just after the Spring Festival in 2006, the China Securities Regulatory Commission announced a list of penalties for stock market blackmailers and consulting agencies. It was called in the industry the first punishment after the blackmail restriction order. Among the 11 penalty decisions involving securities firms, listed companies, and securities practitioners, the punishment of Sun Chenggang (formerly known as "Sun Chenggang"), a market celebrity, has attracted particular attention. Sun Chenggang was required not to engage in any securities business or serve as a senior manager of a listed company within five years. In addition, 10 senior securities executives including Zhang Xiaowei, chairman of Minfa Securities, Wu Ke, chairman of Hantang Securities, and Liu Dali, chairman of Minan Securities, were punished with "permanent market ban". On March 19, 2007, the China Securities Regulatory Commission determined that Cai Guoshu was suspected of publishing seriously inaccurate information on the Internet, which affected the stock prices of relevant companies, and was suspected of violating laws and regulations, and announced that he would be investigated. In the end, the fine was 30,000 yuan. In April 2007, the China Securities Regulatory Commission issued the "Announcement on the Delivery of Administrative Punishment Decisions" in the media and issued a fine of 300,000 yuan to unlicensed stock commentator Li Shijun. Sun Chenggang, who had been banned from entering the venue in 2006, was sued again in December 2007. Because the Shanghai Hongxin Company he founded without approval, he profited from stock trading on behalf of others, he was sentenced to three years in prison with a three-year suspended sentence by the Pudong New Area Court for the crime of illegal business operations. In September 2008, the China Securities Regulatory Commission issued an "Announcement on the Delivery of Advance Notifications of Administrative Penalties and Market Bans" to Shenzhen Frontier Investment Consulting Co., Ltd. and four persons including Wang Mengfei, Liang Zuzhi, Chen Jianping, and Luo Sihong through the media. Tianli Investment Consulting Co., Ltd. and its affiliates are responsible for securities violations, and it is planned to impose administrative penalties and market bans on them in accordance with the law. On November 21, 2008, the China Securities Regulatory Commission investigated and dealt with the first case of market manipulation by a consulting agency. Wuhan Xinland Investment Consulting Co., Ltd. had its illegal gains of 7.35 million yuan confiscated and was fined 7.35 million yuan. Individual investor Chen Jie had his stocks frozen by the China Securities Regulatory Commission in accordance with the law confiscated. From January 1 to April 26, 2007, Chen Jie conducted 37 trading operations through listing advice, buying, recommending, and selling, and Wuhan Xinland illegally made a profit of 7.35 million yuan by charging consulting fees. After the incident, Zhu Handong was fined 300,000 yuan and banned from the securities market for five years. The most sensational and largest fine was issued on the same day. Beijing Shoufang Investment Consulting Co., Ltd. and its legal representative and manager Wang Jianzhong shocked investors for a while. From January 2007 to May 2008, he conducted 55 trading operations through the above methods, bought and sold 38 stocks or warrants, and made a cumulative profit of more than 125 million yuan.

Beijing Shoufang's securities investment consulting business qualification was revoked, and Wang Jianzhong confiscated more than 125 million yuan in illegal gains and imposed a fine of 125 million yuan. Wang Jianzhong is banned from entering the securities market for life.