Financial Link reported on November 15 (Reporter Wu Yuqi) that hithink royalflush information network is caught up in rumors of being investigated for illegal stock recommendations.

Today, a small piece of writing during trading caused hithink royalflush information network's stock price to suffer a blow, mentioning, "hithink royalflush information network has significant bearish news, akin to illegal stock recommendations, is being investigated, and has suspended business for a few months." As of the close on November 15, hithink royalflush information network fell by 14.30%, with the latest stock price at 272.50 yuan, and the market cap evaporated over 24 billion yuan on that day.

At the same time, Financial Link reporters have also noticed that some related group chats for hithink royalflush information network have indeed been disbanded.

Financial Link reporters sought verification from hithink royalflush information network regarding this matter, to which insiders responded: "The company does not have illegal stock recommendation situations and is not under investigation."

There are also screenshots showing "core team of hithink royalflush information network" mentioning, "Some employees at hithink royalflush information network previously did not follow regulations, and the company has taken action, this was a matter from several years ago. There were previously some unqualified employees engaging in business, and the company is currently correcting this."

Investors have reported violations by hithink royalflush information network personnel.

Financial Link reporters found that hithink royalflush information network has been pointed out on multiple social platforms for issues such as "illegal stock recommendations, false advertising, and personnel working without licenses."

On a certain social media platform, an investor pointed out, "I once trusted a certain 'senior advisor' on the hithink royalflush information network platform, who not only failed to provide valuable investment advice but also lured me into paying high service fees through exaggeration and false promises."

The investor also stated that when he tried to check this advisor's qualifications, he couldn't find this person on the official website of the relevant industry association and that they had been recommending stocks without a license.

There are many similar situations; another investor mentioned on a certain platform, "I added a staff member's WeChat through the mobile hithink royalflush information network software advertising window. After this person sent some stock profit information to the investor and collected fees on hithink royalflush, the stock market suffered losses of four to five hundred thousand yuan, but this staff member was not registered with the china securities association, which is an illegal stock recommendation."

Another investor claimed that there were internal personnel at hithink royalflush engaging in private stock recommendations.

Information shows that the so-called stock recommendation behavior refers to the activity of providing paid consulting services directly or indirectly involving securities investment analysis, prediction, or suggestions. This falls within the category of securities investment consulting services business. According to the Securities Law and the Interim Measures for the Administration of Securities and Futures Investment Consulting among other relevant regulations, engaging in securities investment consulting services must obtain business permission from the china securities regulatory commission. No institution or individual may engage in stock recommendation activities without obtaining the corresponding qualifications.

Illegal stock recommendations refer to institutions and individuals that do not have securities investment consulting qualifications providing investors or clients with paid consulting services involving securities investment analysis, prediction, or suggestions directly or indirectly, including network live-stream stock recommendations, weibo and WeChat stock recommendations, software stock recommendations, and training stock recommendations.

A review of relevant regulations by the financial association journalist shows that Article 7 of the Interim Regulations on Securities Investment Advisor Business clearly states that personnel providing securities investment advisory services to clients must have securities investment consulting qualifications and register with the china securities association as securities investment advisors.

Regarding the penalties, Article 33 clearly states that securities companies, securities investment consulting institutions, and their personnel engaging in securities investment advisory business in violation of laws, administrative regulations, and these provisions can be subject to regulatory measures from the china securities regulatory commission and its dispatched agencies, including being ordered to make corrections, supervisory talks, issuance of warning letters, ordered to increase the number of internal compliance checks and submit compliance check reports, ordered to clean up illegal businesses, ordered to suspend acquiring new clients, and ordered to discipline relevant personnel; for serious cases, the china securities regulatory commission shall impose administrative penalties in accordance with laws, administrative regulations, and relevant provisions; if criminal offenses are suspected, they will be transferred to judicial authorities in accordance with the law.

Hithink Royalflush Information Network shareholders reduced their holdings at a high position.

Since the start of this round of rebound, Hithink Royalflush Information Network's stock price has surged significantly. Even after today's sharp drop, the range increase from September 24 to now has reached 165.65%.

As the stock price of Hithink Royalflush Information Network continues to rise, the employee stock ownership platform Kaishun has proposed a reduction plan. On the evening of November 8, Hithink Royalflush Information Network announced the reduction. The announcement states that the company's third-largest shareholder, Kaishun, plans to reduce its holdings of Hithink Royalflush Information Network shares by no more than 2.688 million shares within three months after 15 trading days from the date of the announcement, through centralized bidding or block trading.

It is worth noting that on the same day the reduction forecast was released, Hithink Royalflush Information Network's stock price soared to 340.50 yuan, once again setting a new historical high, with a market cap exceeding 160 billion yuan. If calculated based on the closing price on November 8, the market value involved in Kaishun's reduction is approximately 0.817 billion yuan.

A netizen commented, "The short essay combined with the reduction information is even more intriguing."

In the third quarter, 139 public funds held Hithink Royalflush Information Network.

Today, Hithink Royalflush Information Network's stock price plummeted, and many public funds also suffered heavy losses.

As of the end of the third quarter, Hithink Royalflush Information Network was heavily held by 139 funds, involving 61 fund companies, with a total shareholding of 11.5629 million shares, which is an overall increase of 7.3059 million shares compared to the previous quarter.

Among them, in the actively managed equity category, the most held is the dynamic strategy managed by well-known fund manager Lu Bin, with a holding of 0.8779 million shares. At the same time, Lu Bin's core growth fund holds 0.5235 million shares, Feng Cheng's Guangfa Electronic Information Media Industry Selection holds 0.7498 million shares in hithink royalflush information network, the China Europe Electronic Information Industry holds 0.7196 million shares, and the new energy fund managed by Feng Mingyuan holds 0.6078 million shares.