The China Securities Regulatory Commission (CSRC) said recently in its report on the handling of 2022 cases that the market bad habit of "profiting from stock speculation through internal information" has not been eradicated, and major events such as mergers and acquisitions, changes in actual controllers, etc. are still high incidence areas of insider trading. Insider trading is known as the "cancer" of the capital market, which shows the extent of its harm. On the one hand, it seeks illegal interests through insider trading and infringes on the legitimate rights and interests of other investors; On the other hand, insider trading destroys the "three fairness" principle of the capital market, disturbs the value discovery and resource allocation function of the market, and hinders the healthy development of the securities market. In this regard, the attitude of the regulatory authorities is very firm: zero tolerance. However, in the face of severe crackdown by the regulatory authorities, some people still take risks. According to the report of the CSRC in the last two years, 170 cases of insider trading were handled in 2022, and 201 cases of insider trading were handled in 2021. Among the subjects of the case, insider trading and disclosure of insider information by legal informants accounted for a relatively high proportion. The reason is that these people have lost themselves in the face of interests. For example, in the case handled in 2022, some directors of listed companies bought relevant shares after knowing that the company planned a major restructuring, and sold the profits after information disclosure; Some senior executives of subsidiaries of listed companies know that the company will make major investments and use their own and spouse's accounts for insider trading profits. If you want to be unknown, you must do nothing. The parties involved in illegal activities such as insider trading will eventually be severely punished by law. This requires all market participants to stay away from the red line and refuse to "lick blood". On the one hand, market participants should be in awe of the law. Article 53 of the new securities law stipulates that investors who suffer losses from insider trading shall be liable for compensation according to law. At the same time, the investigation and punishment of insider trading cases is no longer "the whip is raised high and dropped gently". According to the new securities law, if insiders engage in insider trading, the illegal income shall be confiscated and a fine of not less than one time but not more than ten times the illegal income shall be imposed; If there is no illegal income or the illegal income is less than 500000 yuan, a fine of not less than 500000 yuan but not more than 5 million yuan shall be imposed. The original securities law stipulates a fine of not less than one time but not more than five times the illegal income; If it is less than 30000 yuan, it shall be fined not less than 30000 yuan but not more than 600000 yuan. If the case is suspected of constituting a crime, the judicial organ will investigate the criminal responsibility of the relevant responsible subject. For example, on February 11, Chunxing Seiko announced that Sun Jiexiao, the controlling shareholder and actual controller of the company, had received the indictment from the Suzhou People's Procuratorate and the summons from the Suzhou Intermediate People's Court, and was prosecuted for suspected insider trading. On the other hand, insiders should strengthen self-discipline. Maybe some people will think that they are perfect and can hide things from the outside world. Unexpectedly, "there is no airtight wall in the world", and some clues will always be left in the trading process using inside information. From the previous investigation and handling by the regulatory authorities, even for the most complex cases, the investigators can find out the details. Therefore, for insiders, it is necessary to "resolutely not say what should not be said, and resolutely not do what cannot be done". Finally, remind those who are lucky again:
Edit：Hou Wenzhe Responsible editor：WeiZe
Source：Securities Dairy
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