Chinese authorities are intensifying their crackdown on online public opinion blackmail! In recent months, multiple criminal cases related to such activities have been reported in Shanghai, Shandong, Shanxi, and Hubei provinces, marking a significant increase in enforcement compared to previous years. Over ten well-known financial media outlets and two traditional media-related platforms have been investigated for alleged involvement in public opinion blackmail. Some outlets are accused of launching negative news campaigns against potential IPO companies or financial reports, luring profits from them. A public relations director from a well-known internet finance company listed on the New York Stock Exchange is reportedly under investigation for alleged dealings with financial media outlets. Another prominent internet platform's financial channel, consumer complaint channel, and social media platform are also under scrutiny for similar cases. According to the Caixin Media, recently investigated financial media outlets include Institution House, Valuation House, Laser Finance, Coward's Finance, Jizhong Business Review, First FinTech, Ocean Business Review, See Financial View, Fandian Finance, Financial Storm, and Jinxiang Club. Two traditional media-related new media platforms, Investment Insight and Caliber Finance, were also investigated. These accounts were suspended from publication in mid-to-late October. On October 22, the Shanghai police dismantled a public opinion blackmail gang, arresting ten suspects. Police in Shanxi, Shandong, and Hubei had previously apprehended at least nine suspects. Witnesses stated that investigated financial media outlets write negative news, causing company attention, and then seek fees under the guise of commercial collaboration. Currently, all of Shanghai, Shenzhen, and Beijing securities exchanges have set up metrics for public opinion environment and negative reports. Companies with too much negative publicity during the IPO application process are unlikely to pass the meeting. Some listed companies set aside funds to manage negative reports before filing their prospectuses, ranging from '700,000 to several million RMB,' with some amounts reaching tens of millions of RMB.
It is common practice for companies in the IPO process to be cautious about negative media coverage. As the crackdown on public opinion blackmail intensifies, financial media outlets are facing increased scrutiny, which could impact their operations and revenues. The strict enforcement has forced some outlets to self-censor and avoid writing negative articles that could attract undue attention. This development highlights the evolving landscape of media and financial regulations in China, where the lines between journalism and commercial interests have become blurred in the context of public opinion management.