The new regulations on short-term trading supervision have arrived, what impact do they have on individual investors?

In order to implement the regulatory system for short-term trading as stipulated in the Securities Law, and to facilitate the entry of medium and long-term funds into the market, the China Securities Regulatory Commission recently formulated and issued the "Several Provisions on the Supervision of Short-Term Trading", which will be implemented starting from April 7th of this year. Many netizens immediately left messages asking: What does the "provisions" regulate? Will it be illegal for individual investors to frequently buy and sell stocks in short-term trading? In response to the questions from netizens, let us first talk about the core conclusion: The "provisions" do not prohibit ordinary individual investors from engaging in short-term trading, and the daily short-term buying and selling, as well as swing trading activities of the vast majority of retail investors are not affected by the "provisions". Many individual investors mistakenly believe that "short-term trading supervision" restricts individual frequent trading upon seeing it. The "provisions" make it clear that the short-term trading system was not initially aimed at ordinary individual investors, but specifically aimed at constraining the "key few" within listed companies. Ordinary individual investors are not restricted by the "provisions" at all. The core purpose of the "provisions" is to prevent insiders of listed companies from taking advantage of information to engage in short-term arbitrage, and to maintain market fairness. In simple terms, top executives of companies knowing about the good or bad performance in advance or the progress of major projects, buying stocks at low prices and quickly selling them at high prices to cash out; major shareholders disturbing stock prices with frequent trades based on their shareholding advantage, the "provisions" aim to close such loopholes. For ordinary individual investors, as long as they do not have insider information and do not engage in illegal activities, they can continue with their short-term trading. Investors need to be cautious and not lend their securities accounts to others, especially not to help top executives of listed companies or major shareholders manage their accounts.