Press "Enter" to skip to content

Chinese exchanges propose limits on trading suspension


China is seeking to reduce the period of time listed companies can suspend their shares, citing abuses by companies that halt trading during volatile markets.

Trading halts for restructuring will be limited to 10 days, according to proposals from the Shanghai and Shenzhenstock exchanges published late Wednesday.

Previously, companies could suspend their shares for up to three months by saying that they are undergoing major restructuring.

For suspensions dealing with control rights or tender offers, it should be no longer than five trading days. Furthermore, the suspension time for other exceptions should be no more than 25 trading days.

Earlier this month, the China Securities Regulatory Commission clarified the basic principles for the suspension of trading in listed companies, which is to shorten the suspension period and strengthen disclosure requirements.

The exchanges are allowed to take certain measures, such as on-site inspections and forced resumptions of trading to deal with companies that force unreasonable delays or refuse to resume trading.

Related Post

Chinese stocks had the worst year in a decade Chinese stocks end the last trading day of this year in the gaining territory, but still down sharply for the whole year, making it one of the worst y...
Chinese pork supplier Chuying Agro set to delist a... Do you remember Chuying Agro-Pastoral Group Co Ltd - the Chinese company that paid bond investors with ham instead of interest payments last year? The...
Mainland, Hong Kong stocks tumble as concerns over... A viral pneumonia that originated in central China's Wuhan city is spreading to more cities rattled capital markets for another day. Investors are co...
Chinese stocks bounce driven by surging overseas f... Chinese stocks bounced on Monday, with the Shanghai Composite Index closed 1.1 per cent higher at 2698 after hitting 2698 intraday, a new low in the l...
Two funds of China’s “national team... The latest earnings reports show that two funds of China's "national team", part of the force that rescued the country's stock market in the crash in ...


Comments are closed, but <a href="" title="Trackback URL for this post">trackbacks</a> and pingbacks are open.