Twelve stock market analysts from China's island of Taiwan were detained in Shanghai on suspicion of fraud on Tuesday, nine of whom have been released on bail, and three remain in detention, Taiwan-based media reported on Saturday.
They all work at a Shanghai-based stocks analysis app named Thousand Billion whose software product "aicaopan" (love trading) is accused of causing investors losses via recommending stocks that would rise to the 1@AnsonB@SEO@0 percent daily ceiling. The firm is not certified to sell the products, media reported.
这12人都在上海一家名为 仟和亿 的股票分析公司工作，其应用程序 爱操盘 被指控向投资者推荐股票而导致其损失，他们宣称能够帮股民抓住涨停股。
A notice posted on the front page of the app on Tuesday said that its stock analysis and recommendation video programs were suspended due to a system failure, and the company will issue a notice as soon as the system is fixed. The same notice was posted on its Sina Weibo account on Wednesday.
Besides the alleged illegal recommendation and manipulation of shares, another possible reason for the detentions is that some of the analysts are not licensed to provide stock market analysis in the Chinese mainland, an industry insider who requested anonymity told the Global Times on Sunday.
Some of the app users who had paid for the services requested reimbursement after news of the arrests leaked out. "Failed just after I paid? Please refund," a Sina Weibo user named Miricajier posted on Wednesday.
Tianyancha.com, a business inquiry service provider, shows that the largest shareholder in Tho@AnsonC@SEO@usand Billion is Liao Yingqiang, a high-profile stock market analyst that was slammed with a fine of 129 million yuan ($18.75 million) by China's securities watchdog for manipulating the market and pocketing ill-gotten gains in May 2018.