In 2025, the first individual lending securities account was fined. The transactions were made by someone else, but the one being penalized is oneself.

On January 10th, the Shanxi Securities Regulatory Bureau announced a fine against individual investor Liang Han for lending his securities account to another person to use. He was ordered to correct this behavior and fined 30,000 yuan. Looking back at 2024, the illegal behavior of lending or using securities accounts for trading in the securities market was not uncommon. Regulatory authorities imposed penalties on a total of 20 individuals throughout the year, with accumulated fines exceeding 6 million yuan. The penalties targeted both enterprises and individuals, ranging from as low as 30,000 yuan to as high as 1 million yuan. Such actions often entail various risks, as the borrower may engage in insider trading, market manipulation, and other illegal behavior using the account, while the lender would face serious consequences. Individual investor fined for lending securities account On January 10th, the Shanxi Regulatory Bureau issued a fine against an individual, Liang Han, for lending his securities account to another person in violation of the securities laws. He was ordered to correct his behavior, received a warning, and was fined 30,000 yuan. This penalty not only resulted in financial losses for Liang Han but also served as a warning to all investors regarding the proper use of securities accounts, drawing significant attention to the issue in the market. Liang Han, born in July 1982, residing in Haidian District, Beijing. On June 18, 2024, Liang Han opened a securities account at the CITIC SEC Beijing Sanlitun East Road Securities Business Department. However, after opening the account, it was controlled and used by Guo Moumeng. Between June 20, 2024, and July 31, 2024, Guo Moumeng utilized the account to buy a large number of "KraussMaffei" stocks, with a total of 533,531 shares traded and total transaction amounting to 2,619,869.26 yuan. Subsequently, from August 2nd to October 21st, they conducted a large number of sell operations, selling a total of 368,800 shares with a transaction amount of 2,127,529.5 yuan, still holding 164,731 shares at the end of the transactions. All funds for these transactions came from Guo Moumeng, and the shares sold and held belonged to Guo Moumeng. During the investigation, regulatory authorities collected a wealth of detailed evidence, including relevant interviews, situation explanations, WeChat screenshots, bank and securities account information, transaction records, and IP addresses of trading devices. This evidence formed a complete chain, clearly proving Liang Han's illegal act of lending the securities account. Liang Han's actions violated Article 58 of the Securities Law of the People's Republic of China, which states "no unit or individual shall lend their own securities account or borrow someone else's securities account to engage in securities transactions," constituting an offense as stated in Article 195 of the Securities Law. Based on the facts, nature, circumstances, and social harm of Liang Han's illegal behavior, the Shanxi Regulatory Bureau, in accordance with Article 195 of the Securities Law, decided to order Liang Han to correct his actions, issue a warning, and impose a fine of 30,000 yuan. Last year, a total of 20 people were penalized for lending or using securities accounts for trading, with accumulated fines exceeding 6 million yuan. Looking back at 2024, illegal behaviors such as lending or using securities accounts for trading in the securities market were not uncommon. Throughout the year, regulatory authorities imposed penalties on a total of 20 individuals, with accumulated fines exceeding 6 million yuan. The penalties targeted both enterprises and individuals. For example, Hefei Lirong Gongmao Co., Ltd. was fined 300,000 yuan for lending securities accounts; at the individual level, penalties ranged from as low as 30,000 yuan to as high as 1 million yuan. For instance, Wang Xiaoan and Fang Shixiong were both fined a substantial amount of 1 million yuan each for lending securities accounts, demonstrating the strict regulatory stance. Compliance personnel in securities firms told reporters that the phenomenon of lending securities accounts is not uncommon, often involving lending accounts to friends and family. Many investors believe that lending to friends and family is a trivial matter and will not have serious consequences. However, this overlooks the professionalism, complexity, and potential risks of securities trading. Initially, some of these lending behaviors may be based on trust and helping out between friends and family, but inadvertently violate laws and regulations. There are many similar cases of illegal activities due to lending or using securities accounts in the securities market. The cases of Guo Jianwei, Shi Jun, and Yang Juanjuan are particularly representative. Yang Juanjuan opened a securities account at Zhongtai Dongying Beiyi Road Business Department in April 2020. From July 26, 2022, to January 17, 2024, Guo Jianwei and Shi Jun used Yang Juanjuan's securities account for trading in "Shandong Huapeng Glass" stocks. During this period, they accumulated purchases of 2,511,400 shares of "Shandong Huapeng Glass," with a total purchase amount of 14,073,020 yuan. They later sold 1,131,400 shares with a total sale amount of 7,321,128 yuan, and all trading funds came from Guo Jianwei and Shi Jun. Of particular concern is that from July 26, 2022, to September 9, 2022, Guo Jianwei engaged in insider trading of "Shandong Huapeng Glass" using the account, involving a high number of shares totaling 1,869,400, with a purchase amount of 10,100,291 yuan. This insider trading behavior has been separately handled by the Shandong Regulatory Bureau of the China Securities Regulatory Commission. The act of lending securities accounts may seem simple but actually carries significant risks. For the account lender, handing over the account to someone else means losing control over the funds and securities trading within the account. If the borrower engages in illegal activities such as insider trading or market manipulation using the account, the lender may face serious legal consequences, not only in terms of financial penalties but also potential criminal charges and significant damage to their reputation. In terms of fund safety, if the borrower mismanages the account leading to losses, recovering these losses can be challenging for the lender. For the entire securities market, lending securities accounts disrupt normal trading order. Violators may use this to evade regulation and engage in illegal activities such as illegal fund transfer, market manipulation, insider trading, etc., undermining the principles of fairness and justice in the market, damaging the legitimate rights and interests of investors, and affecting the healthy and stable development of the market. Even when lending to family members, if they inadvertently get involved in illegal operations, lenders may find it difficult to stay detached from the consequences. To prevent such violations from recurring, investors need to enhance compliance.Awareness, fully understand that the securities account is an important tool for securities trading, just like a personal identification card, it has uniqueness and exclusivity, should not be lent casually. When opening a securities account, it is necessary to carefully read relevant laws and regulations and contract terms, and clarify the rules of account usage and responsibilities.Securities operating institutions should also earnestly fulfill their main responsibilities and strengthen the management of client accounts. In the account opening process, carefully verify the client's identity information to ensure that the account opening information is true, accurate, and complete. In daily transaction monitoring, utilize big data, artificial intelligence, and other technological means to promptly identify abnormal trading behavior and account lending clues. Once violations are discovered, immediate measures should be taken and reported to regulatory authorities. At the same time, enhance investor education and publicity work, disseminate knowledge of securities laws and regulations to investors through various channels, improve investor risk awareness and compliance trading capabilities, especially focusing on common phenomena such as lending accounts to relatives, emphasizing risk warnings. This article was reprinted from Cai Liang Society, GMTEight Editor: Li Fo.