Shenzhen Stock Exchange: Strict Punishment On Illegal Trading Of Non-Tradable Shares

Shenzhen Stock Exchange (SZSE) imposed transaction prohibition on Fujian Henglian Stock Co., Ltd. from May 7, 2008 to May 27, 2008 as a punishment for its illegal trading of non-tradable shares. Further discipline action is pending for the company and will be marked on its credit record.

Fujian Henglian Stock Co., Ltd. accumulatively sold 1.36 million non-tradable shares of Guanfu Modern Household Wares, a company listed on Small and Medium-sized Enterprise Board with the stock code of 002102, accounting for 1.19 percent of the company’s total equity through the competitive biding system of SZSE. The conduct is against rules and regulations promulgated by China Securities Regulatory Commission earlier.

Principals from SZSE noted pointedly that tightened controls will be cast on the reduction of non-tradable shares by shareholders of listed companies. They also called for other investors to strictly comply with relevant regulations.