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The special publicity campaign “Investor Protection: Understand the Rules, Recognize the Risks” is officially launched.
To thoroughly implement the requirements for comprehensive and stringent regulatory oversight based on the rule of law, help investors gain a better understanding of securities and futures regulations, enhance their risk awareness and self-protection capabilities, and safeguard their legitimate rights and interests, the China Securities Regulatory Commission recently decided to launch a special publicity campaign themed “Investor Protection: Understand the Rules, Recognize the Risks.”
Over the past two decades of development in the securities and futures markets, the legal and regulatory framework has become increasingly robust, market size has steadily expanded, and product offerings have grown ever more diverse. As the markets have deepened, however, various illegal and non-compliant practices have also come to light. In recent years, numerous new phenomena and emerging issues have surfaced, making it increasingly difficult for investors to discern the compliance and complexity of trading methods—especially when illegal entities deliberately engage in fraudulent activities, leaving investors’ legitimate rights and interests vulnerable to infringement. Therefore, our association has launched this special publicity campaign with the aim of specifically disseminating knowledge about securities and futures laws and regulations, clearly defining the bottom-line requirements stipulated by these regulations, helping investors—particularly small and medium-sized investors—to recognize the common scams and tricks employed by illegal and non-compliant actors, clarifying any misconceptions investors may hold, enhancing their ability to identify and guard against risks, and thereby avoiding unnecessary losses.
This event primarily adopts an analytical and interpretive approach centered on case studies. The event is divided into four phases, each focusing on a specific theme: “Stay Away from Insider Trading,” “Be Vigilant Against Market Manipulation,” “Beware of Improper Disclosure,” and “Prevent Illegal Business Practices.” These phases will be carried out in a phased and continuous manner. The campaign focuses on areas where investor rights are frequently compromised—such as insider trading, market manipulation, improper disclosure of information, and illegal business practices by market participants. It selects penalty cases that have significant social impact and serve as typical examples, transforming complex and specialized legal cases into engaging, easy-to-understand stories that vividly illustrate the red lines of compliance and the bottom lines of risk. Through this event, investors will learn exactly what they must not touch or do, as well as recognize common tricks and traps, thereby enhancing their awareness of lawfulness and risk prevention.
The promotional theme for the first phase of the campaign is “Stay Away from Insider Trading.” The relevant cases fall into four categories: First, close relatives of individuals who possess insider information engage in insider trading; second, individuals who have relationships—such as classmates or friends—with those who possess insider information engage in insider trading; third, certain individuals steal or fraudulently obtain insider information from those who possess it and then use such information for insider trading; and fourth, individuals who possess insider information disclose it to others. Through these cases, we wish to inform investors that insider trading is a serious illegal and criminal act strictly prohibited by Chinese law. Anyone, regardless of the method used, who discloses or exploits insider information may cross the red line. Whether or not there are illegal gains, they will be held accountable, facing substantial legal and investment risks. We urge all investors to remain vigilant and avoid readily believing or acting on unverified information; otherwise, once caught by the law or suffering losses, it will be too late to regret. At the same time, we also warn those who possess insider information—such as senior executives of listed companies and market professionals—that they must strictly adhere to confidentiality boundaries, exercise tight control over those around them, and never sacrifice their career prospects and family happiness for petty gains. Let’s not become “rats” or “worms” in the capital markets.