The Shanghai Stock Exchange (SSE) has recently imposed trading restrictions on two accounts with their owners respectively surnamed Huang and Xu in a bid to curb over-speculation on newly issued stocks.
It is learnt that Huang and Xu have conducted abnormal trading behaviors like frequent orders, withdrawal of orders and sale of shares after driving up prices during the trading of several stocks since this year, and been suspected of taking advantage of capital adequacy to speculate on new shares. Despite a number of oral and written warnings from the SSE, Huang and Xu still conducted abnormal transactions frequently. As a result, the SSE imposed the disciplinary punishment of 1-month trading restrictions on their accounts.
To prevent potential new stock over-speculation, the SSE has made careful arrangements by urging relevant members to fulfill their obligation of management over clients' trading behaviors and play a better role in cooperative supervision and publicizing potential risks in new stock speculation through news media to dissuade investors from irrational participation. Furthermore, the SSE has put a list of accounts prone to new stock speculation under strict surveillance and taken such measures as oral and written warning, interview and account trading restriction to deter speculation in time.
According to an SSE official, to ward off the spread of the trend of over-speculation on new shares and safeguard investors' interest, the bourse will consistently tighten its supervision and punishment over malicious speculation and impose severer supervision measures on securities accounts by which serious speculations are conducted. The SSE also reminds investors of investment risks in new shares listing and to avoid blindly following suit.