At the end of 20 12, Zhongneng Xingye and Securities Market Weekly published a series of articles entitled "Kangmei Lies", which triggered investors' doubts about the legality of this "muddy water" short selling model.
In this written reply dated July 5, 20 13, the CSRC stated that the securities investment consulting business is clearly stipulated in the Securities Law, the Interim Measures for the Administration of Securities and Futures Investment Consulting and the Interim Provisions on the Issuance of Securities Research Reports.
If the published articles are limited to stating facts and do not include "investment analysis, forecast or suggestion" and "investment analysis opinions such as securities valuation and investment rating", it does not belong to securities investment consulting business.
However, any market behavior, including publicly releasing research reports and conducting market transactions, must strictly abide by the Securities Law and other laws and regulations and the relevant provisions of the China Securities Regulatory Commission, and must not engage in illegal acts that disrupt the order of the securities market, such as insider trading, manipulating the market, making false statements and fabricating false information.
Regarding the question of "publishing true and reliable investigation and research information, but affecting the fluctuation of securities prices, and then making profits for institutions, is it suspected of manipulating the market" and "whether it is against the Securities Law and related laws and regulations to sell the securities in question first and then publish the bearish report for profit", the CSRC said that there is no explicit provision in the current laws and regulations, and the relevant departments need to make a determination according to legal procedures and specific factual evidence.
Extended data
Huanju Group was shorted by muddy water.
June, 2020165438+1October 19, well-known short-selling institutions in troubled waters? Waters? Research) released a report on social media, saying that Huanju Group is a fraudulent company, and about 90% of the live broadcast revenue is false. About 80% of Live's live broadcast revenue is false, involving billions of dollars.
In the report, Muddy Water also questioned Baidu's acquisition of YY, and questioned whether Baidu would really take out more than 7% of its market value in cash to buy an almost completely false business form to achieve growth. Muddy water believes that a huge fraud like YY can't be undetected in Baidu's due diligence.
Guangzhou Daily-Huanju Group was shorted by muddy water
People's Daily Online-There is no explicit stipulation on whether it is legal to short in muddy water.