Regulators crack down on "circular trading" - Guangda, Galaxy and nearly 10 other securities firms have touched on the "three major pitfalls" of margin trading.

Margin trading business faces strict regulation. Since 2024, the regulatory measures against brokerage margin trading business have significantly increased, with nearly 10 brokerages, including the above-mentioned Everbright Securities Branch and Galaxy Securities, being found to have violated regulations. A review of brokerage annual reports by reporters found that in the course of conducting margin trading business, providing convenience for clients to "work around regulations" for cash withdrawals, assisting clients in opening margin trading accounts illegally, and failing to properly manage client trading behaviors are common "pain points".