Core Viewpoint - The recent administrative penalty against Zheng Han, an employee of Changcheng Guorui Securities, highlights ongoing issues of insider trading and regulatory compliance within the securities industry [1][4]. Group 1: Incident Details - Zheng Han engaged in stock and convertible bond trading using a borrowed account from February 7, 2022, to February 1, 2024, with a total transaction amount of 5.7667 million yuan [1]. - Despite the high trading volume, Zheng incurred a total loss of 48,555.17 yuan from these transactions [1]. - The regulatory body imposed a fine of 40,000 yuan on Zheng for violating the Securities Law, which prohibits securities personnel from trading under false names or others' accounts [1]. Group 2: Industry Analysis - The persistence of insider trading among securities personnel is attributed to information asymmetry, the temptation of profits, and inadequate penalties for violations [4]. - Employees often exploit their access to non-public information to gain unfair advantages in trading, leading to potential short-term profits [4]. - Current penalties for violations are perceived as insufficient to deter misconduct, and many brokerage firms lack robust internal controls to monitor employee trading activities effectively [4]. - Regulatory authorities have reiterated the importance of compliance and have committed to strict enforcement against any violations by securities personnel [4].