Douyin Bans Influencer 'Da Lan' for Illegally Touting Stocks

Chinese short video platform Douyin has permanently banned the account of a popular influencer who goes by the nickname “Da Lan” after he repeatedly posted videos recommending specific stocks, the company announced in a statement on October 11.

Over the past month, Douyin said it has dealt with over 3,600 accounts and 15,000 videos related to illegal securities activities as stock market fervor has increased recently in China. The platform said some accounts have directly called on fans to go all-in on certain stocks.

Da Lan’s account was singled out for posting dozens of stock-related videos in late September and early October with sensational titles like “Openly Predicting the Rise and Fall of Stocks on October 8th”, “What Stocks Should New Investors Buy to Make Money”, and “Recommend Everyone to Trade Stocks, Am I Really Wrong”. In the videos, an excited Da Lan claimed things like “Believe me, (the market) will explode after the holiday!”

Besides pumping up followers to buy stocks on his videos, Da Lan also directly recommended individual stocks in his video comment sections and even claimed gold prices would continue to fall, suggesting fans sell gold and go all-in on stocks.

According to media reports, Da Lan, whose real name is Lan Tianhang, worked as a fitness trainer in Wenzhou, Zhejiang province before starting an e-commerce business selling health foods in 2015. He began posting videos on Douyin in 2020 and quickly gained a following, attracting 4 million fans within 3 months.

However, Da Lan’s health food business lost 20 million yuan despite his online popularity. He then pivoted to selling online courses and started hyping up get-rich-quick investment schemes to his followers. Earlier this year, Da Lan was called out by state media People’s Daily for running an online course that critics labeled a “cut leek” scam. His Douyin account was also temporarily banned in May.

Chinese authorities have been cracking down on unlicensed individuals providing stock tips and investment advice online. Only organizations or individuals with a license from the China Securities Regulatory Commission are allowed to provide securities investment analysis, forecasts or recommendations. Douyin said it is committed to maintaining a “clean and upright” community and will continue to firmly crack down on illegal securities-related activities on its platform.

The banning of a high-profile influencer like Da Lan for pumping stocks sends a strong message as Chinese regulators seek to tame a retail investor frenzy that has emerged amid the post-pandemic bull market. Many new and inexperienced investors have piled into the market in recent months, driven by a fear of missing out. But experts warn the current rally is not sustainable and retail investors are at high risk of being burned when the music stops.