Core Viewpoint - The stock price of the well-known domestic investment advisory platform Jiufang Zhituo plummeted over 30% within the first hour of trading, resulting in a market value loss of nearly 10 billion yuan, triggered by rumors of a regulatory "surprise inspection" [1][2]. Group 1: Regulatory Inspection - The China Securities Regulatory Commission (CSRC) initiated "surprise on-site inspections" targeting several licensed advisory institutions, including Jiufang Zhituo, focusing on two sensitive areas: the blurred line between algorithmic recommendations and "gray area" marketing, and systemic issues in user suitability management [2][9]. - Internal sources revealed that some high-yield strategy combinations may involve hidden commission sharing with specific brokerages, raising concerns about the legitimacy of their recommendations [2][10]. Group 2: Business Model Reevaluation - Jiufang Zhituo's business model, which combines "internet traffic and advisory services," is facing a fundamental reevaluation as regulatory scrutiny tightens on marketing practices. The average annual growth rate of marketing expenses has been 45% over the past three years, while the growth rate of paying users has dropped from 68% in 2021 to 23% last year, indicating a decline in traffic benefits [3][11]. - The platform's reliance on AI-driven and quantitative models is now under scrutiny regarding algorithm transparency, with concerns that the "black box" nature of their operations could erode investor trust, especially in volatile markets [3][11]. Group 3: Industry Impact - The market anticipates that the regulatory storm will accelerate industry reshuffling, with platforms lacking solid research capabilities facing valuation changes and increased compliance costs, potentially leading to forced transformations or acquisitions [4][12]. - Traditional brokerages with comprehensive research systems and compliance experience may seize the opportunity to expand their market share in the advisory sector [4][12]. Group 4: Investor Guidance - The incident serves as a warning for investors to be cautious of "high-yield promises," as any advisory service guaranteeing profits or excessive returns should be viewed skeptically [4][12]. - Investors are advised to prioritize compliance qualifications when selecting advisory platforms, considering not only their licenses but also their historical compliance records [4][12]. - A long-term industry transition from "traffic-driven" to "compliance-driven" and "content-driven" is expected, emphasizing the importance of helping investors establish long-term asset allocation discipline [5][13].