Legal analysis: illegal. In China's funds, securities, futures and other fields, the use of undisclosed information transactions is more frequent. Backed by the huge amount of money invested by the public, the actor gains huge illegal benefits by buying or selling in advance, and transfers the risks and losses to other investors, which not only damages the property interests of his unit, but also seriously damages the principles of openness, justice and fairness in the securities market, and seriously damages the interests of customer investors or retail investors with weak information. Seriously damage the reputation of the financial industry, affect investors' trust in financial institutions, and then have a serious impact on asset management and the healthy development of funds, securities and futures markets. Therefore, the crime of trading with undisclosed information is added in the Seventh Amendment to the Criminal Law of People's Republic of China (PRC), and this crime is stipulated in the same article as the crime of insider trading and the crime of leaking inside information, which shows that the illegality and responsibility of the two crimes are equivalent. The crime of trading with undisclosed information should also be applied to "the circumstances are particularly serious"

Legal basis: Article 180 of the Criminal Law states that a person who knows the inside information of securities trading or who illegally obtains the inside information of securities trading buys or sells securities or discloses the information before the issuance, trading or other information that has a significant impact on the price of securities is made public. If the circumstances are serious, he shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also or solely be fined not less than one time but not more than five times the illegal income; If the circumstances are especially serious, he shall be sentenced to fixed-term imprisonment of not less than five years but not more than ten years, and shall be fined not less than one time but not more than five times the illegal income.

Where a unit commits the crime mentioned in the preceding paragraph, it shall be fined, and the persons who are directly in charge and other persons who are directly responsible shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention.