Opened the mobile phone trading software and looked at the stock price trend of Citychamp Chase (600067.SH), Huang Mingtao, who has 7 years of stocks, realized that he was killed as a “pig”.“It turns out that I am the stupid one.” On September 25, under the guidance of the “teacher” in the live broadcast room, Huang Mingtao bought the Citychamp Chase in a full position and lost 20% in just 4 hours. He couldn’t let go of it for a while. Some of the investors who bought at the same time even lost more than 80,000 yuan.
Huang Mingtao’s experience is not alone. Since the beginning of this year, there has been a significant increase in the scams of recommending stocks to fiddle with small and medium-sized retail investors through high-ranking orders through live webcasts. The live broadcast method is more intuitive and inducing. It is easy for people to buy in a short period of time without thinking and become a picker. And some investors call such scams “killing pigs.”
A reporter from Times Weekly found that in the process of conspiring to stage a “killing pig” drama, the “banker” and the “teacher” were in a mess, and the division of labor was clear. Scams are not clever, but they can always easily win the trust of many investors. Using “trust” as a sickle, those with ulterior motives have made great profits, while ordinary investors have suffered heavy losses.
The heavy-handed rectification of the regulatory authorities has been “on the way.” On September 18, Chang Depeng, the spokesperson of the China Securities Regulatory Commission, stated at a press conference of the China Securities Regulatory Commission that the China Securities Regulatory Commission has deployed dispatched agencies to initiate a three-month special rectification operation to attack the relevant black industry chain.
Encountered “killing pig plate”
At 9:14 on the morning of September 25, in the live broadcast room of the website named Yigu Lecture Hall, a “teacher” who claimed to be “Zhang Weimin” announced his so-called “key to get rich”-Crown City Chase.
“Directly hang the daily limit, directly link the daily limit, this ticket will immediately open the continuous pull.” Zhang Weimin yelled vigorously.
Because of his profit-making experience on Skyrim Holdings (002759.SZ) a few days ago, Huang Mingtao believed in “Teacher Zhang Weimin”. Without too much consideration, at 9:15, Huang Mingtao bought the whole position at the daily limit price of 4.85 yuan per share. At 9:25, the trading software showed that all transactions were made.
At the time of the transaction, Huang Mingtao was immersed in the happiness of winning. Earlier, Zhang Weimin and his assistant told him through the live broadcast room and WeChat that “this stock has a 7 daily limit”.
“I don’t have time to think about it, I’m afraid I won’t be able to get in the car when it’s late.” Huang Mingtao said.
Data shows that at 9:15, Crown City Chase just started pre-market bidding, and the daily limit orders reached 20,516 hands instantly, and its stock price was also pulled up to the daily limit. Subsequently, the daily limit orders continued to increase. By 9:20, Crown City Chase maintained the daily limit, with daily limit orders reaching 243,301 lots.
The mood in the live broadcast room was ignited immediately. Many investors have expressed their follow-up, and even some bullet screens said that selling houses and selling wives should also follow up. There are many bullet screens expressing their admiration for “Teacher Zhang Weimin.”
At that time, Huang Mingtao was still deciding to cheat for his killing.
After 9:23, Crown City Chase’s daily limit orders quickly decreased, and selling orders quickly increased. By 9:25, there were only 24,122 daily limit orders left. Straight Flush (159.880, 2.49, 1.58%) market data shows that during the call auction period, Citychamp Chase matched 320,000 lots. This means that during the call auction period, there are pending orders for 156 million yuan of funds.
However, Huang Mingtao did not know what this meant.
At the same time, there are voices of “killing pigs” in the live broadcast room from time to time. Judging from the screenshots provided by the victim to the Times Weekly reporter, the skeptic was quickly silenced, and his barrage was immediately overwhelmed by support.
In fact, as early as the evening of September 24, some investors posted on the stock bar to remind the stock that it was suspected of “killing pigs”, but it did not seem to have attracted attention.
“At that time, it was like watching a football game on the spot. Under that atmosphere, I couldn’t control it at all, even if I knew it was a liar, I would buy it.” Huang Mingtao said.
At 9:30, Citychamp Chase opened its daily limit high, but it only lasted for a moment, and then the time-sharing line went green. The stock price went from a 9.98% increase to a 4% drop. The whole process took less than one minute.
The live broadcast room also turned from applause to full of doubts.
“Teacher Zhang Weimin said this was unexpected. He also lost. He told everyone to sell on Monday, and if the loss was lost, I would bring everyone back.” Huang Mingtao recalled, “We asked him to open a trading account for everyone to see. Pretend not to see it and refuse to make it public.”
Immediately afterwards, “Teacher Zhang Weimin” left the live broadcast room on excuses, and Huang Mingtao and several other investors were removed from the WeChat group chat. When Huang Mingtao contacted Zhang Weimin’s assistant and found that he had been blocked, the live broadcast room was also closed.
At this time, Huang Mingtao woke up like a dream-he had encountered a “killing pig”.
In the afternoon, Huang Mingtao’s loss widened, and Citychamp Chase’s stock price fell all the way to the limit, staged a “sky floor”. Investors who followed up during the call auction lost 20% in a single day.
On the same day, Citychamp Chase set a new high in more than 4 years with a turnover of 774,000 lots. As of the close, Citychamp Chase has fallen 9.98% to 3.97 yuan per share.
After-market data showed that Citychamp Chase was listed on the Shanghai Stock Exchange with a daily price fluctuation of 15% due to price increase and decrease restrictions. The top five and five seats had a cumulative net sale of 73.3 million yuan.
Among them, Sell One China Galaxy Securities Guangzhou Binjiang East Road Securities Business Department and Sell Two CITIC Securities (30.220, 0.02, 0.07%) Shenzhen Branch sold two seats fiercely, with net sales of 58.79 million yuan and 14.59 million yuan respectively. It is understood that the Shenzhen branch of CITIC Securities is the seat of the famous hot money Happy Coast.
Trust is the “sickle”
“We just trust him too much. We have to buy whole positions regardless of price.” Huang Mingtao was a little upset during the whole process of resumption, “It turns out that we are the stupidest fool.”
The “killing pig” in the stock market refers to people with ulterior motives. In the name of recommending stocks, they build trust with investors through group pulls and live broadcasts. When the time is right, investors are allowed to buy a certain stock, and the dealer will get the money from it. Lee’s scam. In the scam, winning the trust of Huang Mingtao’s “teacher” is an indispensable key role.
A reporter from Times Weekly combed through the revelations of relevant investors and found that before such stocks plummeted, there had been cases where so-called “teachers” used social platforms such as WeChat groups and live rooms to strongly recommend them. In the shipping stage, the role of “teachers” began to emerge.
“Teachers are responsible for getting customers to take orders, and dealers will give teachers a certain percentage according to the amount of money or profits made.” Gong Hao, a small hot money in Guangdong, told Times Weekly that the customers he refers to generally refer to small and medium investors.
The rake is generally 1%-5% of the received capital, “As long as there is a screenshot to prove the transaction, the dealer will pay.” According to Gong Hao, some “teachers” do collect screenshots of transactions, “on the one hand for settlement after the event, on the other hand, it is convenient for the dealer to arrange shipment plans.”
According to Gong Hao, in the circle, “Saizhupan” has a “gentle” name-“Internet Shipping”. At present, network shipments have become standard equipment for bookmakers.
The Times Weekly reporter’s investigation found that the “banker” and the “teacher” are often embarrassed with each other, and the two have a detailed team division of labor. For the “bookmaker”, a complete set of “network shipment” process often includes three stages: collecting, preparing for delivery (also known as “shipping”), and dispatching. For “teachers”, they are responsible for the three stages of drainage, customer training, and cooperation with shipments.
“In the past, the most difficult thing was to ship, but the existence of teachers and their customers made this link less difficult, and the efficiency of shipping greatly increased.” Gong Hao said.
Feng Lei, who once participated in the drainage of “teacher”, told Times Weekly that the “teacher” team usually obtains customers by placing advertisements or other content on portal websites, financial websites, WeChat public accounts, stock bars, Douyin and other platforms. Resources, and then use telemarketing and other means to divert traffic to live broadcast platforms such as Litchi TV, Quaker Finance, and WeChat groups.
“Similar to the free consultation stocks of staying on the phone, the mutual push of the Great God official account, etc. are all advertisements, all for the purpose of obtaining customers and attracting traffic.” Feng Lei said.
After the drainage is completed, the “teacher” team will establish a trust relationship with new investors through technical teaching and leading “meat-eating” methods. After entering the group for the first time, Huang Mingtao only lamented the profound knowledge of the “teacher”, but after making a profit on Skyrim shares, Huang Mingtao began to fall.
Once a relationship of trust is formed, it means that the “harvest” is about to begin, and long-term “pig raising” means that the longer you raise, the harder you will cut.
“In a group, it is difficult to maintain independent thinking.” Huang Mingtao said, “There are thirty or forty people in a group. After being removed from the group chat, only two or three people are found to be victims, and the others are childcare.”
The Times Weekly reporter’s investigation found that although the “teachers” have a high degree of similarity in their operation methods, they are not more clever than the traditional “pull head” tricks, but they are very easy to use and have been successfully repeated in different cases.
The paradox of human nature is that in the cycle of “entry-harvest-repentance” again and again, no matter how heavy the cost of the “killing pig” case is, and how profound the lesson is, it has failed to prevent investors from repeating the mistakes of their predecessors.
This is also the underlying reason why similar scams are frequently staged in A shares.
After the opening of the market on September 9, the share price of Jiamei Packaging (002969.SZ) rose all the way. After a short limit, a huge sell order appeared, and the stock price fell rapidly until the limit fell and staged a “day floor”. In the following three consecutive trading days, it fell to the limit and investors suffered heavy losses.
On September 14, a reporter from the Times Weekly learned from the customer service of the Gugua Finance APP that on the morning of September 9, a lecturer used the platform’s live broadcast room to call on investors to place orders at high prices to buy Jiamei packaging, causing serious losses for some investors.
Facts have proved that Jiamei Packaging is a typical operation method of “absorbing chips by a large amount-locking up-quickly dispatching goods”, and the stock price trend shows the characteristics of a short-term rise and a rapid decline.
The aftermath did not calm down, and on September 18th, the A shares reappeared as a “killing pig”.
In Zhongjian Technology (002779.SZ) stocks, some investors said that they received guidance from the so-called “teacher” in the WeChat group at noon that day to buy Zhongjian Technology. Many investors said that the “teacher” once claimed that “three consecutive boards are expected to hit 40%.”
The time-sharing chart shows that after the opening of the market on the afternoon of September 18, the trading volume of Zhongjian Technology rapidly expanded, with 154 million yuan in one minute. However, as of the close, the stock price of Zhongjian Technology was closed down, and the turnover was 262 million yuan throughout the day.
Since the beginning of this year, more than 10 stocks in the A-share market have been accused of being involved in the “killing pig” incident. In addition to Jiamei Packaging and Zhongjian Technology, it also includes Jimin Pharmaceutical (603222.SH) and Taijia (002843.SZ) , Songlin Technology (603992.SH), Wole Home (603326.SH), Shengyang Technology (603703.SH), Yuanshang Stock (603813.SH), etc.
Based on the above-mentioned cases and interviews with multiple investors, Times Weekly reporters found that such “killing pigs” often have the characteristics of small circulation market value, weird and independent trends, and low turnover rate.
According to data from Jimin Pharmaceutical’s 2020 semi-annual report, the company’s total equity at the end of the period was 320 million shares, and the top five tradable shareholders held 61.53%. Based on this calculation, the remaining tradable shares of Jimin Pharmaceutical are about 123 million shares. Based on the closing price of RMB 48.65 per share on June 3 before the stock price change of Jimin Pharmaceutical, the remaining circulating market value is about 5.989 billion yuan.
Shengyang Technology’s circulating market value is even smaller. The company’s total share capital is 230 million shares. The top five shareholders collectively hold 56.44% of the company’s shares. The remaining circulating shares are approximately 100 million shares, calculated at the closing price of 18.89 yuan per share on May 14 , The remaining circulating market value is only 1.889 billion yuan.
“The circulation market is small, which is conducive for the dealer to spend a small amount of money to achieve control.” Gong Hao told Times Weekly reporter.
On the other hand, this type of stock also has a significant feature, that is, its trend is independent and does not follow the general market trend.
Take Jimin Pharmaceutical as an example. After the limit fell on April 3, the company’s stock price was almost sideways until June 4. In the meantime, the company’s stock price is hardly affected by the broader market.
“Generally stocks are not so straight. This is an obvious control.” Gong Hao said that in addition to sideways, such stocks may also show rising trends. “But basically it belongs to the left hand to the right hand of the dealer, selling and buying by themselves, the turnover is not high, the turnover rate is relatively low, there is no rival, and the liquidity is very poor.”
“Once such stock makers start to ship, they are particularly sharp, basically diving.” Gong Hao added.
Difficulties in rights protection claims
Judging from the news released by the China Securities Regulatory Commission, the current “killing pig plate” has been intensively monitored.
As early as June 19, the China Securities Regulatory Commission issued a risk warning, stating that individual stocks have “big V” to cooperate with “bookmakers” to ship and recommend stocks in a flickering manner. After investors took over, the stock price plummeted and suffered heavy losses, so high vigilance was required.
The China Securities Regulatory Commission also stated that it will maintain a high-pressure crackdown on market manipulation and illegal stock recommendation, and if any suspected crime is found, it will promptly transfer the case to the public security agency for investigation and investigation, and pursue criminal responsibility in accordance with the law.
On September 18, the spokesperson of the China Securities Regulatory Commission, Chang Depeng, also stated at the press conference of the China Securities Regulatory Commission that the China Securities Regulatory Commission has deployed special rectification actions to severely crack down on “stock market black mouth”, “illegal recommendation of stocks”, and “off-market capital allocation.” “And related “black group” and “black APP”.
Chang Depeng said that illegal activities such as “black mouth”, “illegal recommendation of stocks,” and “off-exchange fund allocation” are the “cancer” of the capital market, which seriously disrupts the order of the securities market and damages the legitimate rights and interests of investors. The China Securities Regulatory Commission has always maintained this. “Zero tolerance” attitude, resolutely continue to crack down.
In response to such problems, the China Securities Regulatory Commission deployed its dispatched agency to launch a three-month special rectification operation to attack the relevant black industry chain.
In an interview with a Times Weekly reporter, Bi Yingxi, a lawyer of the Huiye Law Firm, stated that in accordance with the provisions of the Securities Law, any acts such as manipulating the securities market, fabricating and disseminating false or misleading information and causing losses to investors shall bear compensation in accordance with law responsibility.
Huang Mingtao revealed that currently, the number of human rights defenders group composed of Victims of Citychamp Chase has reached 41 people.
However, Bi Yingxi said: “Although investors have the right to defend their rights against the above-mentioned actors, it is still difficult to claim compensation if they are to be truly included in the litigation practice.”
Bi Yingbi pointed out that issuing securities investment recommendations through online WeChat groups, etc., has the problem of difficulty in obtaining evidence. The victimized investor cannot accurately determine the true and accurate personal information of the information publisher and WeChat group convener. At the same time, manipulating the securities market requires actors to be the ultimate gainers, which is difficult to define.
In addition, due to the intersection of civil and criminal law, even if a civil lawsuit is passed, civil rights protection may not continue due to criminal offences. However, the filing of a criminal case often requires the CSRC to first punish relevant units and personnel, and simultaneously transfer criminal clues to the police. It may take a long time for the agency to file a case after investigation.
(At the request of interviewees, Huang Mingtao, Gong Hao, and Feng Lei are all pseudonyms in the article)