Fan clubs complain of account freezes after fundraising platform halts transactions

One of the most popular platforms for Chinese fans to support their “idols” by raising funds and getting information on the entertainment industry has announced that it’s suspending all trading services, which means that supporting entertainers by financial channels is not allowed on the platform, and the sudden notice has enraged dozens of fan clubs, including South Korean boy band EXO’s and K- pop idol Lisa’s fan clubs.

The platform Owhat said on Sina Weibo on Thursday that it will suspend all trading services including selling products about stars and it will also stop services for withdrawing deposits. Fans who have purchased products can apply for refunds.

The notice enraged many fan clubs. More than 30 fan clubs have issued statements to protest the action, as they might be unable to get their profits back and have lost tens of millions of yuan, the Red Star News reported.

Since 2014, Owhat has been an important platform to raise money for fan clubs or sell idolthemed souvenirs.

Some entertainers’ fan clubs bought advertising boards at subway stations to celebrate their idols’ birthdays or purchased the naming rights of asteroids. A large amount of money was collected from millions of fans, and platforms such as Owhat were their bases.

A fan of Chinese actor and singer Wang Yibo, 26, told the Global Times on Sunday that she bought her idol’s posters that had been made by fan clubs on the platform, under the influence of her love of the entertainer at that time.

Such fundraising reminds many of pyramid selling, and in many cases the spending is not transparent, observers noted.

In August, the Cyberspace Administration of China published a notice on its website asking provincial offices to rectify the fan circle chaos. The administration specified 10 measures, including cancelling all ranking of entertainers, barring forums that picked fights and led to chaos, and requesting agencies to better guide fan groups.