Crackdown on financial misinformation online
China's top internet regulator released a rule on Wednesday intended to crack down on misinformation online about the financial markets, ordering online financial information providers to obtain relevant credentials and obey regulations.
The regulation, released by the Cyberspace Administration of China (CAC), is aimed at improving the quality of financial information online, ensuring the sound development of the industry and protecting all parties' rights, an unidentified official with the CAC said in a statement online.
The official pointed out that some organizations have not "tightly regulated" content, have hyped up financial risks, released sensitive market information and distorted regulations.
That "has had an impact on financial stability, and it needs to be regulated," the official said.
Under the regulation, organizations that provide information for financial analysts, traders and decision-makers, unlike news services, should set up an appropriate management mechanism to verify information, store data, ensure information security and protect personal information and intellectual property rights.
Financial information providers are banned from creating or spreading content involving false financial information, distorted monetary policies, instructions for economic crimes, made-up events and illegal financial products and services.
Violating the ban could involve punishment from the CAC and local government agencies.
Violators of the regulations could be put on the credit blacklist and subjected to administrative punishment and even criminal charges, according to the statement.
