The China Securities Regulatory Commission announced on New Year’s Eve a three-dimensional punishment of China Merchants Securities, laying out the consequences for multiple employees’ illegal stock trading. This includes issuing a warning letter to the chairman and taking various administrative measures against the company.
In a statement released on February 9, the China Securities Regulatory Commission revealed that they had organized inspections and law enforcement activities to investigate and address the illegal stock trading activities of multiple employees at China Merchants Securities. The regulatory body emphasized that it would implement three-dimensional punishments, including criminal accountability, administrative penalties, administrative supervision measures, and internal accountability.
In response to the penalties, China Merchants Securities expressed cooperation with the regulatory authorities and assured full support for the decision. The company also acknowledged the need for stricter measures to prevent employees from engaging in illegal stock trading. Furthermore, the company stated that it has already initiated new employee education and implemented daily monitoring and auditing of securities accounts.
The punishments doled out by the China Securities Regulatory Commission included administrative penalties for 63 individuals, with one person receiving a lifelong ban from the securities market. In addition, one person was transferred to judicial authorities for suspected insider trading, while 46 individuals were subject to administrative supervision measures.
The chairman of China Merchants Securities was issued a warning letter as part of the regulatory action. Alongside this, the Shenzhen Securities Regulatory Bureau issued decisions on administrative supervision measures for the company, citing various issues in employee behavior management and information technology system construction.
The China Securities Regulatory Commission has emphasized a zero-tolerance policy for illegal stock trading by securities practitioners. They aim to build a long-term mechanism to deter and prevent such violations and have vowed to continue strengthening institutional supervision and disciplinary measures.
The regulatory body has outlined plans to improve the system and mechanism, strengthen supervision and law enforcement, and continue to purify the industry ecology. This will include the formulation of a special rectification work plan, reinforcement of internal monitoring and accountability mechanisms, and the implementation of compliance management for all employees.
China Merchants Securities and its employees now face increased regulatory scrutiny and are expected to adopt stricter internal controls to prevent future violations. The focus on strengthening the securities industry’s ethical and legal standards aims to create a more transparent and trustworthy financial market.