2 1 Shi Ji Jing Ji Bao Dao·2025-04-28 07:16Core Viewpoint - The regulatory scrutiny on margin trading business in China has intensified, with multiple securities firms being penalized for various violations, particularly related to "circumventing regulations" and improper client management practices [1][2][4]. Group 1: Regulatory Actions - The Guangxi Securities Regulatory Bureau issued a warning letter to Everbright Securities for facilitating clients in "circumventing regulations" during margin trading [1]. - China Galaxy Securities was also reprimanded by the Beijing Securities Regulatory Bureau for insufficient control measures against "circumventing regulations" and for engaging in improper trading activities [4]. - Since the beginning of 2024, nearly 10 securities firms have been found to have violations in their margin trading operations [1]. Group 2: Common Violations - The three main areas of violations in margin trading include: - Providing convenience for clients to "circumvent regulations" [2]. - Assisting clients in improperly opening margin trading accounts [5]. - Inadequate internal management and failure to properly manage client trading behaviors [7] . Group 3: Contractual Revisions - In response to regulatory pressures, some securities firms are revising their margin trading contracts to better manage client behaviors and prevent "circumventing regulations" [8]. - Longjiang Securities announced a revision of its margin trading contract to ensure clients comply with legal and regulatory requirements [8]. - China Galaxy Securities also plans to amend its margin trading contract to prohibit "circumventing regulations" activities, with penalties for violations [9]. Group 4: Regulatory Framework - The China Securities Association released guidelines to assist securities firms in managing client trading behaviors and preventing "circumventing regulations" [10]. - The guidelines outline measures for identifying and managing risks associated with "circumventing regulations" in margin trading, including institutional, contractual, employee, and system controls [10].