A 29-year-old man named Xie has been detained after creating a fake rumor about BYD (HKG: 1211, OTCMKTS: BYDDY) acquiring Nio (NYSE: NIO) using AI software, according to local media reports. The rumor gained widespread attention last week, prompting an investigation by Hefei public security authorities.
Xie used artificial intelligence software to fabricate an image suggesting that BYD would purchase Nio, with the intention of boosting his own self-media account and increasing traffic. The man, who is not a resident of Anhui province, where the incident occurred, spread the fake image online to deceive the public.
The fake rumor emerged when a screenshot of a WeChat status surfaced, purportedly showing a BYD employee claiming that the two companies would establish a joint venture, with BYD holding a 51% stake and Nio holding 49%. The post alleged that the joint venture would acquire Nio for RMB 16.5 billion ($2.3 billion), with Nio maintaining its independence.
Nio’s assistant vice president for branding and communications, Ma Lin, promptly refuted the rumor on Weibo, emphasizing the company’s strong performance and positive cash flow in the third quarter. Ma reached out to BYD’s head of branding and public relations, Li Yunfei, to verify if the individual behind the rumor was indeed a BYD employee, prompting Li to also deny the authenticity of the information.
Following the dissemination of the false rumor, Nio’s legal department reported the incident to the police, leading to an investigation by the Hefei public security bureau. After verifying the claims with the involved companies, authorities confirmed the rumor’s falsity.
Under Chinese law, individuals who purposely spread false information to disrupt public order face detention for more than five days but less than 10 days, along with a potential fine of up to 500 yuan. Minor cases may result in a maximum penalty of five days’ detention or a fine of up to RMB 500.
The incident underscores the importance of verifying information before sharing it online and the consequences of spreading false rumors. As technology continues to advance, it is crucial to be vigilant against misinformation and uphold the integrity of online content.
