Shanghai Stock Exchange established a blockade of illegal trading

Shanghai Stock Exchange established a blockade of illegal trading

In view of the possible speculative speculation in the early days of the opening of the company, the Shanghai Stock Exchange stressed yesterday that it will introduce an investor’s appropriate management system, implement temporary suspension of intraday abnormal fluctuations, etc. Strict supervision to ensure that no systematic trading risks occur.

Correctly look at the initial fluctuations

Zeng Gang, head of the Market Supervision Department of the Shanghai Stock Exchange, said that overall, due to the imbalance between supply and demand in the market and the high probability of initial speculation and speculation, individual stocks may fluctuate greatly, so it is necessary to correctly view the launch of the company. Initial speculation and speculation: First, investors have a high degree of participation in the early stage of the launch of the science and technology board, and the market is active, indicating that the market is full of expectations for capital market reform, which is conducive to the long-term healthy development of the science and technology board. On the contrary, if the market is relatively deserted, it will not be conducive to the development of the science and technology sector and the next phase of capital market reform. Second, from the perspective of overseas markets, even in mature markets dominated by institutional investors, it is difficult to avoid large fluctuations in the initial stage of IPOs.

Regarding the fluctuations that may occur in the initial stage of the market opening, the Exchange will adopt the following measures: First, it must strictly supervise the illegal and illegal trading activities of the Science and Technology Board to ensure that there is no systematic trading risk. Second, maintain the normalization of the issuance and listing of the science and technology board, and strengthen the delisting mechanism and legal responsibility. Third, improve the trading mechanism in a timely manner, and alleviate the imbalance between supply and demand of the science and technology board from the system. Fourth, guide long-term funds into the market and improve the structure of the investor board.

Abnormal fluctuations in the trading session will temporarily suspend trading

In view of the fact that there is no limit on the price increase in the first five days, Zeng Gang said that there are three major problems in the current A-share price limit. First, the magnetic effect is caused by the ups and downs; the second is the lack of market liquidity in extreme cases. Third, pricing is inefficient. In order to allow the market to fully compete and reach equilibrium prices as soon as possible, the Shanghai Stock Exchange opened the initial price limit. The reason why Kechuang board is set to the limit of no change in the first five days is mainly to refer to the situation of mature international markets. Generally, the price fluctuations of new IPOs are relatively stable after five days. Taking into account the full game of the first day of the new shares, the operation of the last four days can provide reference for the next step of reform. After five trading days, the company will relax the price limit to 20%, mainly to reduce trading resistance and improve market pricing efficiency. According to historical data, the 20% increase or decrease is 10% lower than the current A-share limit, which can reduce the ups and downs by about 80%.

Some investors are worried that while the new stocks are going up and down, how to curb excessive speculation and abnormal fluctuations in the market, maintain market stability and protect the interests of investors? Zeng Gang said that the Shanghai Stock Exchange mainly has three aspects of preparation: one is to introduce an investor’s appropriate management system to avoid unqualified investors to follow suit; the second is to introduce a price declaration range limit in the continuous bidding stage (the purchase price must not be higher than the purchase price) 102% of the base price; the selling price must not be less than 98% of the selling base price), and the market price protection limit (the investor must set the highest acceptable or lowest selling price when the market price is declared) And implement a temporary suspension system for abnormal fluctuations in the intraday trading (the trading price in the intraday trading is suspended for 10 minutes when the opening price of the opening price rises or falls by 30% or 60% for the first time); the third is to disclose the abnormal trading monitoring standard and Strengthen the supervision of abnormal trading behavior at the initial stage of IPO.

Wang Wei, deputy dean of the National Finance Research Institute of Tsinghua University, believes that it is impossible to rule out a sudden rise and fall in a short period of time. This is because there is a process in the early stage of market launch because of the role of the market mechanism, and investors have a process of understanding the trading system and market. Therefore, it is impossible to negate the reform direction of marketization and return to the practice of “carrying the price" because of this situation.