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A one-month trading restriction was imposed on an account of an individual investor called Wu Baozhen.
The Shanghai Stock Exchange (SSE) has imposed a trading restriction on an account belonging to Wu Baozhen, an individual investor, with an aim to crack down on short-term manipulation. According to the SSE, the account has been suspected of repeated short-term manipulations by frequent orders and withdrawal of orders with no purpose of real transaction.
It is learnt that Wu's account was very active in the recent period in manipulations of such stocks as *ST Tai Yuan Tianlong Group Co., Ltd., Gansu Yasheng Industrial (Group) Co., Ltd. and Insigam Technology Co., Ltd. By a large number of frequent orders and withdrawal of orders or big orders pushing up the prices to the upper trading limit, the purchases are not for real transactions but to mislead other investors' judgment on the trends of supply and demand as well as the prices of the stocks and make them follow suit.
The account was still active in such transactions despite a series of measures taken by the SSE including many oral and written warnings to Wu against the illegal behaviors. Therefore, the SSE decided to take disciplinary measures by adopting a one-month trading restriction on the account, as the transactions have disturbed the normal order of the securities market and had a negative impact on other investors' investment decisions.
According to an SSE official, it has proved to be effective to some extent in curbing short-term manipulations when the SSE carried out trading restrictions on some accounts of related investors suspected of manipulation of the stock of China North Optical-Electrical Technology Co., Ltd. in June last year. But this year, frequent false orders and withdrawals reoccur from time to time in some accounts with sufficient capital. What's worse is that some idle funds are also joining in the game with an increasing number of participants. To caution the illegal behaviors and maintain a normal market order, the SSE will adopt a series of self-regulatory measures including trading restriction, study and perfect a long-term effective mechanism for fighting against short-term manipulations, and further intensify supervision on some typical violations in trading.
