Regulators have intensified their efforts to crack down on securities firms' illegal stock trading,aiming to protect investors' legal rights and interests,reflecting the regulatory authorities' high regard for the order and fairness of the securities market.

Employees in the securities industry frequently engage in illegal stock trading,and regulatory authorities are not lenient.

Zhao Yuanjun,the former General Manager of the Investment Banking Division of Everbright Securities,was recently fined 4.6 million yuan by the China Securities Regulatory Commission (CSRC) for insider trading and illegal securities trading,and was subject to a 10-year ban from the securities market.

Choice data shows that as of September 19,securities firms have received 250 penalties this year,with violations involving both companies and individuals,covering investment banking,proprietary trading,and other businesses.

Notably,the illegal stock trading by securities industry employees is a "hot spot," involving different institutions and positions.

In terms of regulatory measures,there is a trend of batch penalties,long traceability periods,and severe punishments.

Investment professionals told reporters from the International Finance News that the penalties for securities personnel's illegal stock trading serve as a warning.

Strict penalties can effectively deter potential violators and remind all securities industry employees to abide by laws and regulations,maintain market order,and protect investors' rights and interests.

Penalties for illegal stock trading continue to be issued.

Choice data shows that as of September 19,securities firms have received 250 penalties this year,with violations involving both companies and individuals,including illegal trading and false information disclosure.

The types of penalties include fines,warning letters,public criticism,and regulatory talks.

Among them,the illegal stock trading by securities industry employees is a "hot spot," involving different institutions and positions,including executives and employees.

In terms of regulatory measures,there is a trend of batch penalties,long traceability periods,and severe punishments.

There are also not a few cases of huge losses from illegal stock trading.

Recently,a penalty information disclosed on the CSRC's official website showed that Zhao Yuanjun,as an insider of the major asset restructuring of "Xingxing Technology," bought "Xingxing Technology" in advance for 11.412 million yuan,suffering a loss of 5.325 million yuan.

In response,the CSRC stated that the illegal situation is relatively serious,and the penalty for Zhao Yuanjun totals 4.6 million yuan,and a 10-year ban from the securities market has been taken against him.

In this regard,Everbright Securities told reporters from the International Finance News that the company firmly supports the CSRC's decision to impose administrative penalties on our former employees.

The company will strictly follow the company's accountability system to seriously pursue the responsibilities of the responsible person,and learn from this experience to carry out comprehensive self-inspection and rectification.

Next,the company will continue to improve the long-term control mechanism,and promote the formation of a strict atmosphere with strict measures.

Coincidentally,the CSRC's official website also recently disclosed an administrative penalty decision issued to an individual,Cao Yichen.

The document shows that Cao Yichen was once a securities industry employee of Kaiyuan Securities.

From February 24,2020,to September 14,2022,Cao Yichen controlled and used the "Xu Mouming" account for trading,operated the "Xu Mouming" securities account through mobile phones and home computers,and the funds for securities trading mainly came from the rolling profits within the securities account,with the funds mainly going to Cao Yichen's personal bank account.

During the period,the "Xu Mouming" securities account suffered a loss of 770,300 yuan.

During the investigation,Cao Yichen made a truthful statement and actively cooperated with the investigation and handling.

The CSRC fined him 200,000 yuan.

On September 14 this year,the Beijing Securities Regulatory Bureau made a batch of penalties,issuing warning letters to Kou Yue and 20 other people.

The above-mentioned personnel,as securities industry employees,all had the illegal behavior of buying and selling stocks.

On the same day,the Beijing Securities Regulatory Bureau decided to take administrative regulatory measures for regulatory talks against Zhuang Jiangbin,who,as a securities industry employee,had the behavior of buying and selling stocks,violating relevant regulations.

In addition,Wang Gangxuan and four other securities industry employees had the behavior of lending securities accounts,and the Beijing Securities Regulatory Bureau also issued warning letters to the above-mentioned personnel.

Regarding the 25 people penalized by the Beijing Securities Regulatory Bureau,the reporter queried the China Securities Association's public information system for employees,among which four people had no practice information,some people could not be clearly identified due to homonyms,and the rest all came from CICC and CICC Wealth,engaged in securities investment consulting (investment advisor) or general securities business.

As early as April 26 this year,the Beijing Securities Regulatory Bureau decided to issue a warning letter to CICC,pointing out that there are the following problems in its compliance management: first,hiring personnel without professional qualifications to carry out related securities business; second,many employees have had the behavior of buying and selling stocks and lending personal securities accounts,and the company's monitoring and control of employee behavior are not in place.

CICC is required to take lessons from this,seriously find and rectify problems,strengthen the management of employee behavior,and truly improve the level of compliance management to prevent such problems from happening again.

The regulatory authorities have clearly expressed their attitude towards the illegal stock trading by securities industry employees.

At the beginning of this year,the CSRC stated that it had investigated the illegal and illegal behavior of many employees of China Merchants Securities in buying and selling stocks.

It relies on criminal accountability,administrative penalties,administrative regulatory measures,and internal accountability for three-dimensional punishment.

In the announcement,the CSRC concisely stated the penalty for China Merchants Securities: first,administrative penalties were imposed on 63 people,with a total penalty of 81.73 million yuan,and a lifetime ban from the securities market was taken against one person.

Second,one person suspected of insider trading was transferred to the judicial authorities for processing.

Third,administrative regulatory measures were taken against 46 people,among which three were proposed to be identified as inappropriate candidates,five were taken for regulatory talks,and 38 were taken to issue warning letters.

Fourth,China Merchants Securities,which is responsible for the management of employees,was taken to order to increase the number of compliance inspections,and the chairman of the company was taken to issue a warning letter,and two former compliance directors were taken for regulatory talks,and China Merchants Securities was urged to start internal accountability,interview related illegal personnel,and implement full accountability.

According to the statistics of the CSRC,from 2019 to 2023,a total of 67 illegal stock trading cases involving employees were investigated,and administrative penalties were imposed on 139 people,focusing on building a long-term mechanism for illegal stock trading that "dare not,cannot,and do not want."

The CSRC stated that it will improve the system mechanism,strengthen regulatory law enforcement,and continue to purify the industry ecology.

Liu Youhua,Deputy Director of the Wealth Research Department of Paipailang,said in an interview with reporters from the International Finance News that the regulatory authorities have intensified their efforts to crack down on securities firms' illegal stock trading,aiming to protect investors' legal rights and interests,and ensure that they can invest in a fair and transparent environment.

This reflects the regulatory authorities' high regard for the order and fairness of the securities market,which is conducive to building a healthy and orderly capital market environment,thereby promoting the stable operation of the entire capital market.

"The treatment measures such as warnings and penalties play a multifaceted role," Liu Youhua said frankly.

First,it helps to maintain market order; second,strict penalties can effectively deter potential violators; third,it can enhance the public's confidence in market regulation,which is conducive to promoting the healthy development of the market; fourth,it helps to improve the compliance awareness and self-restraint ability of practitioners.

Liu Youhua further stated that the penalties for securities personnel's illegal stock trading have an important warning effect,emphasizing the importance of compliance operations and the necessity of abiding by laws and regulations,reminding all securities industry employees to abide by laws and regulations,maintain market order,and protect investors' rights and interests.