In order to facilitate IPO re-launch and related system reform and warn the risks in excessive speculation on the listing date of IPO shares, Shenzhen Stock Exchange released the Notice Governing Improvement of the Supervision and Risk Control on the Listing Day of IPO shares on the Small and Medium Enterprise Board yesterday, and meanwhile the related policies released before were cancelled.
The notice stresses on the importance of implementation of measures of temporary suspension to warn and control the risk existing on the listing date. According to the Notice, on the listing date of IPO shares, the calculation indicator of the threshold for suspension is based on the balance between the transaction price and open price; and once price fluctuation of one stock reach(or over) 20% and 50%, the trading shall be suspended for 30 minutes. The notice also regulates that the regulation on the requirement for announcement of risk reminder while the stock turnover reach 80% is cancelled. The rules regarding the listing date of IPO are also applicable for other similar condition, such as resume of listing.
In addition, the Notice regulates Shenzhen Stock Exchange shall strictly supervise the entrustment and transaction of IPO shares on its listing date. Shenzhen Stock Exchange can adopt further risk management measures at appropriate time. Those cheating behaviors will be restricted to trade or be investigated by CSRC. The notice also described the responsibilities and obligation of securities companies.
Since many small and medium-size investors and new investors suffered big loss in the new share investment in history, Shenzhen Stock Exchange reminds investors, especially small and medium-size investors, of the risk of speculation again.