As the Chinese stock market prepares for a bustling post-National Day holiday period, expectations are running high for a robust start on October 8. Goldman Sachs anticipates an impressive upside potential of 15% to 20% for A-shares. In the vibrant city of Nanjing, a local securities exchange stands as a testament to the heightened interest in the market.

During the lengthy holiday, investment discussions have captured the attention of many. Leading up to the break, A-shares experienced an exciting rally, with the Shanghai Composite Index soaring nearly 13% in just five trading days, crossing the 3,300-point threshold. This significant movement has mobilized numerous investors and financial institutions, prompting several brokerages to keep their services running through the holiday. Staff members from various departments worked overtime to gear up for the anticipated market activity after the break.

A recent piece from the Beijing News highlighted that some brokerage firms even displayed signs encouraging potential clients with messages like, “Open for business during the holiday—come in to open an account!” Some brokerage staff mentioned that they postponed their vacation plans, worried about potential market fluctuations. Instead, they utilized this holiday period to conduct system upgrades, taking turns to manage the operations.

In light of rising competition among brokerages, a fierce “account-opening battle” has emerged, particularly among mid-tier and leading firms. Influencers, often referred to as “Big Vs,” have increasingly played a role in attracting new accounts, with commissions for successful openings reportedly climbing to 1,000 yuan (approximately $141.30). This surge comes despite past regulatory clarifications warning against using influencers for such incentives, which brokerages are prohibited from practicing.

One notable influencer remarked, “A month ago, I was receiving offers around 200 yuan for effective account openings. Last week, that amount jumped to 800 yuan, and now we’re seeing offers as high as 1,000 yuan. This surge has truly revitalized the entire industry.” Other influencers have also reported receiving enticing offers of 500 to 800 yuan for each account they helped open.

Reports indicate that many influencers are now leveraging low-commission accounts to attract brokerages. Their methods for guiding customers have evolved to become more subtle, often involving private groups and WeChat invites, moving away from the previous strategy of sharing direct links on public platforms like Weibo.

A recent post by an influencer known as “Miracle Drug God” on Weibo invited followers to open accounts for stock trading, employing a “scarcity marketing” tactic by claiming that only 50 spots were available in their group of nearly 400. Another prominent influencer, “Baodike,” who boasts a following of 4 million, echoed a similar invitation for followers to reach out for account openings.

Regulatory authorities have taken notice and implemented guidelines governing influencer-led promotions. Since November 2021, new regulations clearly outline the compliance requirements for the collaboration between brokerages and influencers.

These regulations specify that guiding customers to open accounts is considered a solicitation activity under securities brokerage services. Because influencers lack the required licenses, any reward-based account-opening initiatives involving them are deemed non-compliant. Consequently, brokerages have been instructed to discontinue such partnerships altogether.