Buying US bonds guarantees profit? Cathay Investment Trust exposed for buying internet armies to manipulate comments, the Financial Supervisory Commission fines 600,000.

( transferred from encryption city, “Buy US bonds for guaranteed profits? Cathay Investment Trust accused of using internet army to manipulate comments, Financial Supervisory Commission imposes a fine of 600,000”

The Financial Supervisory Commission imposed a fine of 600,000 NT dollars on Cathay Investment Trust and Shin Kong Investment Trust. Cathay was fined for commissioning internet trolls to spread the message that “the possibility of losing money on U.S. bonds is zero,” while Shin Kong was penalized for exaggerating investment performance forecasts in its press release. Both violations were against advertising regulations.

The Financial Supervisory Commission fines two investment trusts: hiring internet armies and exaggerating return rates in press releases.

The Financial Supervisory Commission of Taiwan recently imposed consecutive fines on two well-known investment trust companies, specifically Cathay Securities Investment Trust Co., Ltd. and Shin Kong Securities Investment Trust Co., Ltd., for advertising violations, each fined NT$600,000.

According to the announcement from the Securities and Futures Bureau of the Financial Supervisory Commission, both cases involve the use of potentially misleading language when promoting investment products, leading people to mistakenly believe that investments can guarantee profits or the safety of the principal.

Cathay Investment Trust was penalized for entrusting internet troops to manipulate public opinion.

According to the announcement of the penalty case by the Financial Supervisory Commission’s Securities and Futures Bureau on August 22, Cathay Investment Trust was found to have commissioned “Wangzan Strategy Company” and “Weixun Media Co., Ltd.” to conduct online forum public opinion manipulation during an inspection in February this year.

These online marketing companies post comments in forums using fake accounts, releasing advertisements that emphasize return rates.

One of the comments that caught the attention of the Financial Supervisory Commission was this: “The possibility of losing money on U.S. bonds is zero, as long as you hold them long enough, just the interest alone will cover the costs, how could there be a loss? I currently hold 687B and I am already up about 10%.”

The Financial Supervisory Commission believes that such wording clearly misleads people into thinking that principal safety or guaranteed profits are assured, violating the regulations of the Securities Investment Trust Enterprises Management Rules and the relevant provisions of the Financial Services Industry Advertising and Business Promotion Activities.

This article discusses whether buying US bonds is a surefire profit. Cathay Investment Trust was exposed for hiring online commenters to manipulate reviews, resulting in a fine of 600,000 from the Financial Supervisory Commission. It first appeared in Chain News ABMedia.