No matter if you make a profit or a loss, insider trading will be pursued to the end.

Recently, the Zhejiang Securities Regulatory Bureau disclosed two cases of insider trading administrative penalties, both pointing to the use of inside information to sell in advance to avoid losses. Both cases revolve around the correction of financial data of listed companies as insider information. In one case, Huang Baoan, an individual with knowledge of inside information, quickly sold stocks after receiving the information, avoiding losses of approximately 217,900 yuan, and was eventually confiscated of illegal gains and fined 700,000 yuan. In the other case, Gao Lei contacted an individual with knowledge of inside information, controlled a private equity fund account to sell related stocks to avoid losses amounting to 8.76 million yuan, and illegally made profits under the guise of consulting fees. The regulators confiscated all of their illegal gains and imposed a fine of 1.5 million yuan, and the private equity fund entity was simultaneously held accountable. For a long time, many investors have had a misconception that making money through insider information is illegal, while selling in advance to avoid losses is not a problem. This is a serious misinterpretation of the law. The Securities Law of China clearly prohibits insider trading, without distinguishing between profit-oriented and loss-avoidance behaviors, both of which fall under strict punishment.