Insider trading is a big problem in China's capital market. The regulators are trying to crack down on it by studying past cases. They found that insider trading is mainly done by legal insiders, especially during mergers and acquisitions. The punishments for insider trading are usually just fines, not compensation. The regulators are getting better at catching insider traders, but the penalties are not strong enough to stop it. Insider trading is happening more often, and the profits are high. Overall, the regulators are improving, but more needs to be done to prevent insider trading in the future.