Shanghai Stock Exchange: Heavy Punch On New Share Speculation

Shares of Epoxy Base Electronic Material Corporation Limited (Epoxy Base Electronic) were listed on May 18.

Closing at RMB8.56 per share, up 6.9% from the opening price of RMB8.01, the shares of Epoxy Base Electronic surged 137.8% from its RMB3.60 issuance price, with the intraday turnover rate of 86.1%.

The SSE imposed in-session temporary trading suspension on the shares due to the abnormal fluctuation of the stock prices in light of the "SSE Notice of Toughening Supervision on Trading at Preliminary Stage of New Shares Listing".

According to the SSE, most stock buyers on the first trading day of the shares were small and medium-sized investors, instead of fund companies, securities dealers, insurance companies and other professional institutional investors. Statistics showed that the purchase amount of individual accounts accounted for 99.47% of the total transaction amount. The number of accounts with the transaction amount of less than RMB0.5 million reached 11,000, or 98.41% of the total, while the purchase amount of these accounts accounted for only 58.88% of the total. The number of accounts with the transaction amount of more than RMB5 million was only 6, or 0.05% of the total, but the purchase amount of these 6 accounts accounted for 7.66% of the total.

In addition to promptly imposing warnings on the investors conducting abnormal trading, the SSE, in compliance with the Notice, took measures of in-session temporary trading suspension on several accounts with seriously abnormal trading behaviors, whose owners, including two surnamed Liang and Chen, kept irregular trading after the warning.