(ECNS) -- China's Internet watchdog has joined in efforts to support the stock market by banning illegal online advertisements touting "margin investing", Securities Daily reported.
The State Internet Information Office has ordered local authorities and website operators to pull illegal online ads drumming up unauthorized security trading services.
A notice by the office states that it has found a large number of online ads claiming certain institutes or individuals can lend money to investors or let investors use multiple security accounts to buy shares.
Such behavior has broken China's securities law and regulations, while some of the advertisements have exaggerated profits or misguided investors to the level of distorting market order, it adds.
The office is asking all websites in China to clear such online advertisement information.
Many mainland Chinese have used borrowed money to buy stocks. Dong Dengxin, director of the financial and securities research institute at Wuhan University of Science and Technology, says it is highly risky to borrow money to purchase shares.
