Ms Liu, from Huazhou city in China, was caught on CCTV flashing her underwear during a subway ride in the Vietnam-border city of Nanning in May.
Footage released by the police shows the 38-year-old passenger sitting next to two commuters in a fairly busy carriage.
She directs her phone camera to her legs before lifting her dress up and flashing the camera to her private parts.
Liu then tells her viewers to buy her virtual gifts while she continues to livestream the risqué moves in public.
“Come on, I’m happy as long as you enjoy watching it,” she told her fans on the app.
A train operator is seen walking past in front of her but he doesn’t seem to have notice her indecent behaviour.
According to Nanning Metro Police, Liu was arrested in Luchuan County in Guangxi on May 27 and was charged with one count of reproducing, publishing, selling or spreading pornographic electronic information for seeking profits by means of the internet or terminal of mobile communications.
The police are still investigating into the matter.
Viewers were surprised and thanked the police for arresting the woman.
One said: “I didn’t see that in the CCTV and I’m shocked that people sitting around just watched on.”
Another wrote: “I thought she was watching pornography, didn’t realise she was live-streaming. Nice spot, Nanning Metro Police.”