Shanghai Stock Exchange To Adjust Order Price Range For Call Auction Of New Shares On 1st Listing Day

To better serve the investors, improve the price fixing efficiency of new shares on the 1st listing day and minimize the influence of order price limit on investors' actual order prices, the Shanghai Stock Exchange (SSE) will, according to the market condition and the trading rules, amend some articles in the trading rules concerning price limit. The original order price range from 50% to 200% of the issuance price (or the previous closing price) for call auction of new shares without trading limit on the 1st listing day will be adjusted to from 50% to 900% of the issuance price (or the previous closing price).

The adjustment is for call auctions on 4 kinds of special days: (1) the 1st listing day of new shares; (2) the 1st listing day of additionally issued shares; (3) the 1st trading day after implementation of the equity division reform scheme; (4) the 1st listing resumption day after the trading suspension. When investors make orders during the period of call auction on these days, the effective order price will range from 50% to 900% of the issuance price (or the previous closing price). The order price will be invalid if it is 50% lower or 900% higher than the issuance price (or the previous closing price).

The SSE cautions investors that the adjustment is only applied to the call auction of shares without trading limit. For call auction of shares with trading limit, the effective order price should still be within the trading limit.