Xiaohongshu launches a special action for the governance of financial professional accounts to address illegal inducements for cross-border investment and other violations

According to the Securities Times, Xiaohongshu has launched a special governance action for certified professional accounts in the financial sector starting from June 3. Based on relevant laws and regulations as well as platform rules, financial certifications are only issued to institutions holding compliant licenses. The nicknames of certified professional accounts on the platform must strictly match the actual business scope of the certified entity and must not obtain certification marks through false or misleading information. In the past week, Xiaohongshu has dealt with over 1,500 non-compliant financial professional accounts and will continue to comprehensively strengthen the public verification and validation mechanism, conducting regular inspections and handling of existing accounts.

Staff introduced that since May, the Xiaohongshu platform has dealt with a total of 31,000 accounts involved in financial sector violations and marketing accounts without financial-related qualifications, including 539 notes and 146 comments related to illegal inducement of cross-border investment issues; 141 related notes regarding the low-priced resale of foreign investment bank research reports, and freezing of 132 related products. In addition, the platform has also handled over 130 pieces of suspected illegal information related to gold financial marketing promotion and domestic promotion of overseas platforms.