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the intensity of supervision and rectification of securities companies' illegal stock speculation remains unabated. on september 14, the beijing securities regulatory bureau issued an announcement stating that it had issued warning letters to 20 people including kou yue and taken administrative supervision measures of regulatory talks against one person. in terms of specific reasons, the above-mentioned persons, as securities practitioners, all violated the rules in buying and selling stocks. it is worth noting that recently, many former practitioners of securities companies have been fined for illegal stock speculation. the former head of a securities investment bank was fined up to 4.6 million yuan. there are many similar cases this year. some industry insiders said that the regulatory authorities have deterred potential illegal stock speculators through strict supervision, and have dealt seriously with the violations that have already occurred, which is also a warning and education for other practitioners. in the future, securities institutions should also pay attention to enhancing compliance awareness and risk awareness, and promptly discover and correct violations.

regulators take action to name illegal stock speculation

several securities practitioners were “named” by the regulator on the same day. on september 14, the beijing securities regulatory bureau issued an announcement stating that kou yue, liu haoran, deng honglin, deng qiang, li wan, yang yanrong, wang tongzhou, qu jiaqian, chen kezhou, wang yizhou, xu sirui, gao tianju, wei shiyu, tian tao, ji xianming, yang xiaoli, fu mengjie, feng huarong, zhang shiwen, and jiang haojun, as securities practitioners, had engaged in the buying and selling of stocks. the above-mentioned behavior violated regulations, and the beijing securities regulatory bureau decided to take administrative supervision measures against the above-mentioned personnel by issuing warning letters.

on the same day, the beijing securities regulatory bureau took administrative supervision measures against zhuang jiangbin, who, as a securities practitioner, had also engaged in the buying and selling of stocks. specifically, the above-mentioned personnel are all employees of a leading securities firm and its subsidiaries, and most of them are engaged in general securities business or securities investment consulting (investment consultant).

in fact, recently, many former securities practitioners have been fined for illegal stock speculation. zhao yuanjun, former head of investment banking at everbright securities, was fined 4.6 million yuan for insider trading and illegal stock speculation. specifically, from september 17, 2018 to february 28, 2022, zhao yuanjun worked at everbright securities as a securities practitioner. according to several announcements from listed companies, zhao yuanjun was the head of investment banking at everbright securities. the china securities regulatory commission pointed out that during his career, zhao yuanjun actually controlled and used the ordinary account and credit account of "zhao moujiang" to trade related securities. as of april 25, 2022, all the illegally traded securities have been sold. after calculation, the actual profit of the account is a loss.

in addition, zhao yuanjun also engaged in insider trading. as an insider, he traded "xingxing technology" before the insider information was made public. so far, the china securities regulatory commission has imposed a total fine of 4.6 million yuan on zhao yuanjun. in view of the serious nature of zhao yuanjun's violations, he has been banned from the securities market for 10 years.

regarding the above-mentioned punishment, everbright securities told the beijing business daily reporter that the company firmly supports the decision of the china securities regulatory commission to impose administrative penalties on former employees. the company will strictly follow the provisions of the company's accountability system, strictly hold the responsible persons accountable, and learn from the lessons to further carry out comprehensive self-examination and rectification. in recent years, the company has strictly implemented the "securities law" and related regulatory requirements, continued to consolidate and improve the control of practitioners' professional behavior, and formed a supervisory force from compliance, internal audit, discipline inspection and other lines. through information reporting management, transaction behavior monitoring and verification, accountability for violations, and strengthening warning case education, a comprehensive control mechanism has been formed. the company adheres to the principle of "zero tolerance" for employees' illegal and irregular professional behavior, and establishes an accountability system to strengthen accountability. in the next step, the company will continue to improve the long-term control mechanism and use strict measures to promote the comprehensive formation of a strict atmosphere.

"zero tolerance" attitude helps standardize the securities industry

during the year, there were many cases where similar practitioners were named and fined by regulators for illegal stock speculation. recently, the china securities regulatory commission issued a document stating that cao yichen, a former practitioner of kaiyuan securities, controlled and used other people's securities accounts to conduct securities transactions during his employment from february 24, 2020 to september 14, 2022. during the above period, the securities account controlled and used by cao yichen lost 770,300 yuan, and was fined 200,000 yuan by the china securities regulatory commission.

in august, the dalian securities regulatory bureau pointed out that the dalian branch of huayuan securities had failed to take effective measures to monitor securities brokers' financial management and stock trading activities on behalf of clients, and ordered it to correct the problems.

looking at the individual penalties imposed on practitioners, in march, ping an securities tianjin branch wealth manager bian shuyuan was fined 100,000 yuan by the tianjin securities regulatory bureau for illegally buying and selling stocks using other people’s securities accounts. in february of this year, han fei, former vice president of great wall securities, was fined a total of 117 million yuan by the china securities regulatory commission for illegal stock trading. in the same month, the china securities regulatory commission concentrated on investigating and handling illegal and irregular behaviors of many practitioners of china merchants securities, such as buying and selling stocks. 63 people could not escape responsibility and were fined a total of 81.73 million yuan. at that time, the shenzhen securities regulatory bureau also ordered china merchants securities to increase the number of internal compliance inspections.

regarding the intensive issuance of the above regulatory letters, jiang han, a senior researcher at pangu think tank, said that the severe penalties imposed by regulatory authorities demonstrate their firm determination to maintain market order and protect the interests of investors. through greater penalties, regulatory authorities can effectively deter potential violators, and this "setting an example" approach helps build a better industry atmosphere and professional ethics.

"for companies, being warned may affect their market reputation and brand image, and in turn affect their business development and customer trust. for individual employees, it may affect their careers. serious handling of violations that have already occurred is not only a punishment for violators, but also a warning and education for other practitioners. this 'zero tolerance' attitude will help promote the securities industry to develop in a more standardized and professional direction. in the future, securities institutions should also pay attention to strengthening the training and education of practitioners, establishing a sound supervision mechanism, strengthening supervision and inspection of practitioners' behavior, and promptly discovering and correcting violations." jiang han suggested.

beijing business daily reporter hao yan