1. Case Review
In May 2025, a final ruling by the Shanghai Second Intermediate People’s Court marked the end of the first nationwide case of illegal operation involving “robot stock trading quantitative trading software.” This case unveiled the legal risks behind so-called “intelligent stock trading” and served as a warning to investors.
The main subject of the case was Company S and its actual controller, Mr. Zhong. This company developed a stock quantitative trading software named “DIY Stock Trading Robot,” which attracted investors with claims of “intelligent stock selection” and “guaranteed profits.” On the surface, this software allowed customers to set trading parameters independently, but in reality, the key stock selection models and trading strategies were entirely controlled by the company. To attract more customers, the company colluded with hacker Mr. Han to illegally invade brokerage trading systems, providing customers with so-called “direct trading” services.
Investigations revealed that from 2017 to 2023, Company S illegally profited over 30 million yuan by charging high membership fees and interface fees (i.e., illegal access to brokerage channels). Ultimately, Mr. Zhong was sentenced to seven years and nine months in prison for illegal business operations and copyright infringement, and fined 5 million yuan; hacker Mr. Han was also sentenced to three years.
2. Educational Warning
Any securities service provided without permission, even if cloaked in the guise of “technological innovation,” cannot escape legal sanctions. To protect property safety, we remind investors:
First, strictly verify the qualifications of institutions and personnel. Any service providing securities investment advice, regardless of how innovative its form, must have the corresponding business qualifications approved by the China Securities Regulatory Commission. Investors must verify the authenticity of relevant institutional qualifications through authoritative channels such as the official website of the China Securities Association, and check the professional qualifications of personnel through the official websites of the China Securities Association, the China Futures Association, and the China Securities Investment Fund Association. Do not trust unlicensed operations disguised under a “technological facade.” Second, be highly vigilant against traps of “high returns” and “intelligent” rhetoric. Services claiming “guaranteed profits” and “high success rates in intelligent stock selection” should be approached with caution. The so-called “high-tech” stock recommendation models are often a cover for illegal activities, designed to attract attention. Third, firmly reject illegal trading channels and operations. Compliant securities trading must be conducted through officially licensed brokerage platforms. Any service requiring investors to install unknown external programs or access unofficial trading channels is illegal and poses high risks, with no guarantee of fund safety. Finally, recognize the potential risks of high-fee membership programs. Be cautious of “high-end investment services” that require high membership fees or service fees. Before paying, thoroughly understand the essence of the service, verify the qualifications of the service provider, and confirm that their fees comply with industry standards.
In today’s rapidly developing financial technology landscape, new types of financial crimes are emerging constantly. However, regardless of how the forms change, their essence is to exploit investors’ psychological tendencies for illegal profit. There is no such thing as a free lunch, especially in the investment field. Only by adhering to legal and rational investment practices can one truly safeguard their “money bag.”
（Source: Shanghai Financial Official WeChat）
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