On the 27th, officials from relevant departments of the China Securities Regulatory Commission (CSRC) responded to reporters' questions on the implementation of the new regulations on securities lending and borrowing, stating that they will strengthen regulatory enforcement, establish a sound mechanism for penetrating supervision, and strictly crack down on behaviors that violate the requirements of "restricted shares cannot be lent or borrowed" through multiple layers of nesting, collusive trading, and series arbitrage. If any violations are found, they will be investigated and dealt with together. We welcome all market participants to jointly supervise the implementation of the regulations. On October 14th, the Shanghai, Shenzhen, and North China Stock Exchanges issued a notice on optimizing arrangements related to short selling and securities lending transactions, clarifying that "if an investor holds restricted shares, strategic allocation shares of a listed company, as well as shares with transfer restrictions such as major shareholders or special shareholders reducing shares acquired through block trading, during the restriction period, the investor and its affiliates shall not sell the stocks of the listed company through short selling.", Further improved the requirement of "restricted shares and securities lending are not allowed". At the same time, securities companies are required to verify the situation of investors in accordance with the principle of penetration, exercise front-end control over the relevant trading behaviors of investors, and strictly prohibit participation in violations or providing convenience for violations. The person in charge stated that after the new regulations were issued, regulatory authorities and industry associations urged securities companies to implement the new regulations through various means such as issuing notices, on-site inspections, and industry training. Securities companies inform investors of the new regulatory requirements through announcements, contract modifications, and signing commitment letters, and strive to improve the system and strengthen business control. Before the system renovation is completed, dedicated personnel are arranged to handle transaction declaration and front-end control. Currently, some companies have launched new systems. Overall, most securities companies have basically implemented the new regulatory requirements, but on-site inspections have also found that some securities companies have issues such as insufficient verification of related parties. The person in charge said that in the next step, the China Securities Regulatory Commission will comprehensively strengthen penetrating supervision in accordance with the requirements of the Central Financial Work Conference, consolidate the responsibilities of securities companies, and urge securities companies to strengthen penetrating management of customer trading behavior and trading purposes in accordance with the requirement of "not seeing clearly and not expanding business". It is strictly prohibited to participate in violations or provide convenience for violations, and effectively improve business level. (Lai Xin She)