Analysis of the Impact of Xueqiu Platform's Special Rectification Action on A-Share Market Investment Ecology and Investor Behavior

Based on the collected information, I will now provide you with an in-depth analysis report on the impact of Xueqiu Platform’s special rectification action on the A-share market investment ecology and investor behavior.

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On January 19, 2026, the Xueqiu platform officially launched the special rectification work against illegal information related to the capital market, which is an important measure in response to the spirit of the 2026 China Securities Regulatory Commission (CSRC) System Work Conference and the “Special Rectification of Online False and Inaccurate Information Related to the Capital Market” action launched by the National Internet Information Office[1][2]. In accordance with relevant laws, regulations, and platform rules, the platform focuses on rectifying four types of illegal behaviors that disrupt market order and infringe on investors’ rights and interests[1]:

• Focus on rectifying behaviors of excessive speculation, group speculation, and inducing investors to follow the trend in trading through methods such as “hot money tactics”, “leading teams”, “market review”, and “position sharing”

• Focus on rectifying illegal and irregular activities such as stock recommendation, profit-sharing follow-up investment, and virtual disk fraud carried out by unqualified personnel who induce users to jump to third-party platforms through inciting or suggestive words in the name of “communication guidance” and “paid group joining”

• Focus on rectifying behaviors of interfering with community order through gang-based crimes, manipulating “matrix” accounts and “sock puppet” accounts, carrying out intensive comment linkage, and creating false popularity

• Strictly prohibit the use of AI technology or “small essays” to spread rumors, fabricate so-called “inside information”, and distort the interpretation of public information

The platform has permanently banned 11 illegal accounts including “Hangzhou Xincheng Road”, “Lunhui 666”, and “Grandpa Fu Lu Wa”[1].

On January 16, 2026, the China Securities Regulatory Commission (CSRC) held the 2026 System Work Conference, clearly proposing to adhere to “stability as the top priority” and consolidate the stable and positive momentum of the market[3][4]. The conference emphasized:

“Seriously investigate and punish illegal and irregular behaviors such as excessive speculation and even market manipulation, and firmly prevent sharp fluctuations in the market.”[3]

In the whole year of 2025, the CSRC system investigated and handled 701 securities and futures illegal cases, with fines and confiscations totaling 15.47 billion yuan, significantly enhancing the quality and efficiency of regulatory law enforcement[3]. Wu Qing, Chairman of the CSRC, required building an “Three Excellence” inspection iron army to firmly safeguard market fairness and justice[4].

As one of the largest investor communities in China, the special rectification action of the Xueqiu platform will have a profound impact on the information dissemination ecology of the capital market:

The special action focuses on cracking down on the behavior of spreading rumors using AI technology or “small essays”, which will effectively curb the rapid spread of false information on the internet. Academic research shows that financial media reports have a significant impact on stock market risk contagion, and the spread of false information will exacerbate market volatility and harm investors’ interests[5].

Through the rectification of behaviors such as “fabricating and distorting the interpretation of public information”, the investor community will be encouraged to return to the essence of rational discussion, and the professionalism and credibility of the platform’s content will be improved.

The severe crackdown on behaviors such as “excessive speculation, inducing follow-up trading, and even market manipulation” in the special action will effectively curb the following illegal patterns:

• Creating short-term hot spots by using “hot money tactics”
• Inducing retail investors to take over positions through methods such as “position sharing”
• Creating false market popularity through gang-based operations

According to the notice from the Ministry of Public Security, the “black and gray industries” in the financial sector have formed a complete industrial chain, with the total amount involved in cases reaching nearly 30 billion yuan[6]. The rectification action of the Xueqiu platform will join forces with the overall deployment of regulatory authorities to jointly purify the market environment.

Through the crackdown on illegal securities investment consulting, investors will be prompted to be more vigilant against traps such as “free stock recommendation” and “paid group joining”, and enhance their self-protection awareness.

The special action is highly consistent with the CSRC’s policy orientation of “guiding long-term investment, rational investment, and value investment”[3], which helps to create a healthy investment culture atmosphere in the investor community.

Research in behavioral finance shows that investors generally have the following cognitive biases:

Investors tend to blindly follow market trends and ignore independent judgment and analysis. When seeing most people buying a certain hot stock, they may follow the trend to buy even if they have little understanding of the stock’s fundamentals[7]. This behavior may lead to excessive market volatility and push asset prices to deviate excessively from their intrinsic value[7].

Research shows that overconfident investors trade 30%-50% more frequently than rational investors, but their investment returns are significantly lower than those of rational investors[7]. The frequent position sharing and radical operations of some “key opinion leaders (KOLs)” on the Xueqiu platform may exacerbate investors’ overconfidence tendency.

Academic research points out that investor attention is an important path through which financial media reports affect stock market risk contagion[5]. Even old news that does not contain undisclosed information will have an impact on stock price volatility, because media reports attract investors’ attention and trigger trading behaviors[5].

Through the rectification of illegal securities consulting and false information, the losses suffered by investors due to information asymmetry will be effectively reduced. Financial media reports can improve information dissemination efficiency through investor attention, realize the rapid entry of new information into the market, and reduce information asymmetry among market participants[5].

The crackdown on “inducing follow-up trading” in the special action will curb investors’ irrational behavior of chasing gains and cutting losses to a certain extent. Research shows that investor attention may also trigger irrational emotions, leading to overreaction, herding behavior, and emotional contagion[5].

With the reduction of inciting and inducing content on the platform, investors will be forced to pay more attention to independent analysis and research, and gradually develop rational investment decision-making ability.

It is worth noting that quantitative capital does capture investor discussion data from platforms such as Xueqiu and Guba as a reference for decision-making[8]. According to public information, quantitative institutions use natural language processing technology to analyze signals such as keywords (e.g., “limit-up is certain”, “golden pit”) and surging discussion volume on social media, construct market sentiment factors, and carry out reverse trading operations based on this[8].

After the implementation of the special action:

• The quality of the platform’s discussion content will be improved, which will help quantitative institutions obtain more valuable market sentiment signals
• However, it may also lead to the elimination of some “noise”, affecting the effectiveness of some strategies that rely on social media sentiment factors

• Channels for information acquisition will be narrowed, requiring more reliance on official channels and professional institutions
• Some “follow-up” opportunities will be reduced, and investment decisions need to be more independent

• The investment environment will be more fair and transparent
• The investor rights protection mechanism will be more improved
• It will help cultivate long-term and rational investment habits

Institutional investors will benefit from a more standardized market information environment, and the quality of their research and investment decisions will be improved.

Some strategies that rely on “information gaps” to obtain excess returns may face adjustments, and institutional investors need to pay more attention to fundamental research and value discovery.

Platforms such as Xueqiu will strengthen content review, and the intensity of disposal of illegal accounts and content will continue to increase.

Platforms will pay more attention to introducing content output from professional and licensed institutions to improve the overall professional level of the platform.

Financial KOLs with a large number of fans need to pay more attention to the compliance of their content and avoid touching regulatory red lines.

KOLs need to transform from simply “sharing positions” and “leading teams” to providing professional investment research services, and improve the professionalism and value of their content.

In November 2021, the regulatory authorities issued the “Notice on Regulating Fund Investment Recommendation Activities”, emphasizing that institutions without fund investment consulting business qualifications are not allowed to provide fund investment recommendations[9]. Subsequently, KOLs from multiple fund communities such as Xueqiu, Tiantian Fund, and Alipay were “recruited” by institutions and became part of the formal team[9].

In March 2025, the Economic Crime Investigation Bureau of the Ministry of Public Security and the Inspection Bureau of the State Administration of Financial Regulation jointly launched a 6-month special crackdown on financial “black and gray industries”, focusing on areas such as loan intermediaries, malicious debt evasion, and agency surrender[10]. The action achieved remarkable results, with a total of more than 1,500 criminal cases involving financial “black and gray industries” filed and investigated, and more than 200 professional criminal gangs eliminated[6].

• The number of illegal content on the platform will decrease significantly
• Some investors may feel inconvenience in information acquisition
• The market speculation heat may decrease to some extent

• Investors will gradually adapt to the new information environment
• The platform’s content ecology will be healthier and more orderly
• Irrational volatility caused by follow-up trading is expected to decrease

• Investor behavioral biases are expected to be corrected to a certain extent
• The overall operational efficiency of the market will be improved
• The investor protection mechanism will be more sound

Investors should cultivate the ability of independent analysis and research, reduce reliance on the suggestions of social media KOLs, and pay more attention to in-depth research on the fundamentals of listed companies.

Investors should be alert to illegal securities investment consulting activities such as “free stock recommendation” and “paid group joining”, and obtain investment suggestions through formal channels.

Formulate a scientific and reasonable investment plan, clarify investment objectives, risk tolerance, investment period, etc., and avoid making investment decisions in a state of emotional excitement[7].

Respond to the CSRC’s policy orientation of “guiding long-term investment, rational investment, and value investment”, and focus on the long-term value of enterprises rather than short-term price fluctuations.

Securities regulatory policies are continuously improving, and investors need to pay close attention to policy trends and adjust their investment strategies in a timely manner.

Although the special action helps to reduce market manipulation behaviors, the market may still experience large fluctuations due to various factors.

Investors still need to remain vigilant against various information sources, improve their information identification ability, and avoid being misled by false information.

The special rectification action of the Xueqiu platform is an important measure to implement the spirit of the CSRC System Work Conference, and also an important part of the “Special Rectification of Online False and Inaccurate Information Related to the Capital Market” action launched by the National Internet Information Office. Through severely cracking down on illegal behaviors such as excessive speculation, illegal securities consulting, online black and gray industries, and false information dissemination, this action will have a profound impact on the A-share market investment ecology and investor behavior.

: The special action will effectively purify the information dissemination environment, suppress market manipulation behaviors, promote the construction of investor education ecology, and promote the development of the market towards a more standardized, transparent, and efficient direction.

: The action helps to break the dilemma of information asymmetry, curb the impulse of follow-up trading, promote the cultivation of investors’ independent thinking ability, and gradually correct behavioral biases such as herding behavior and overconfidence.

: With the continuous improvement of regulatory policies and the in-depth advancement of investor education, the A-share market is expected to form a healthier investment culture, and investors’ behavior patterns will become more rational and mature. This will lay a solid foundation for the long-term healthy development of the capital market, and better serve the goals of the real economy and investors’ wealth appreciation.

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[1] Ca联社 (CLS) - Xueqiu Launches Special Rectification of Illegal Information Related to the Capital Market, Permanently Banning Multiple Illegal Accounts (https://www.cls.cn/detail/2263196)

[2] Sina Finance - Xueqiu Launches Special Rectification of Illegal Information Related to the Capital Market (https://finance.sina.com.cn/stock/bxjj/2026-01-20/doc-inhhxkqx7319904.shtml)

[3] China Securities Regulatory Commission (CSRC) - CSRC Holds 2026 System Work Conference (https://www.csrc.gov.cn/csrc/c106311/c7609372/content.shtml)

[4] Securities Times Network - Latest Release from CSRC! Wu Qing Speaks Out! (https://www.stcn.com/article/detail/3598360.html)

[5] China Financial Market Research - Media Reports, Investor Attention and Stock Market Risk Contagion (https://www.nafmii.org.cn/yj/jrscyj/qk/2024/202405/202406/P020250324547965703071.pdf)

[6] Securities Times - Nearly 30 Billion Yuan Involved! Financial “Black and Gray Industries” Are Severely Cracked Down (https://www.stcn.com/article/detail/3561152.html)

[7] Ronghe Dongli - Overview of Financial Investment Management (https://ronghedongli.com/lingyu-qiyeguanli/gaisu/gaisu-invest.html)

[8] Eastmoney.com - Quantitative Capital Does Capture Investor Discussion Data from Platforms Such as Guba and Xueqiu as Decision-Making Reference (https://caifuhao.eastmoney.com/news/20250313210440210570050)

[9] Jiemian News - 0.3% Commission, KOLs Share Real Positions, But They Are Actually “Advertisement Funds”? (https://www.jiemian.com/article/13894036.html)

[10] Securities Times - High Refund Rate of Securities Investment Consulting, “Black and Gray Industries” of Agency Rights Protection Are the Culprits Behind the Scenes (https://www.stcn.com/article/detail/2568264.html)