news flash·2025-04-28 07:21Core Viewpoint - The regulatory scrutiny on margin financing and securities lending business has intensified, with multiple brokerage firms, including Everbright Securities and Galaxy Securities, being found in violation of regulations related to "circumventing standards for cashing out" [1] Group 1: Regulatory Actions - The Guangxi Securities Regulatory Bureau issued a warning letter to Everbright Securities' Nanning Jinpu Road branch due to multiple violations, including facilitating clients in "circumventing standards for cashing out" during margin financing operations [1] - Galaxy Securities was previously ordered to rectify its practices by the Beijing Securities Regulatory Bureau due to insufficient control over "circumventing standards for cashing out" [1] - Since the beginning of 2024, the regulatory environment for brokerage margin financing has become significantly stricter, with nearly 10 brokerage firms being identified for violations [1] Group 2: Common Violations - Common issues identified among brokerage firms include not only facilitating clients in "circumventing standards for cashing out" but also improperly assisting clients in opening margin financing accounts and failing to manage client trading behaviors effectively [1] - The China Securities Association has released guidelines to assist brokerages in managing client trading behaviors, specifically through the "Securities Business Demonstration Practice No. 5 - Management of Client Trading Behaviors in Margin Financing and Securities Lending" [1] Group 3: Industry Response - In response to the regulatory pressures, brokerages such as Galaxy Securities and Changjiang Securities have begun revising their margin financing business contracts to strengthen management over client behaviors [1]