Securities practitioners can now speculate on stocks? Industry insiders: It is a misunderstanding, it is actually to strengthen regulation.

On April 28, the China Securities Industry Association issued the "Guidelines for the Investment Behavior Management of Directors, Supervisors, Senior Management Personnel and Securities Practitioners of Securities Companies" to the securities industry and solicited opinions. This is the first time the Association has made comprehensive regulations on the investment behavior of securities practitioners, aimed at preventing illegal and irregular investment activities such as insider trading, using undisclosed information for trading, market manipulation, conflict of interest, and bribery. It is worth noting that after the publication of the draft, some market participants misunderstood the provisions as "allowing securities practitioners to speculate in stocks," which is actually a misinterpretation. According to these individuals' analysis, the provision in the draft referring to "securities practitioners who need to open accounts" means securities practitioners who hold stocks due to the implementation of equity incentive plans or employee stock ownership plans and therefore need to open a stock account, which is also required for employees holding stocks.