Shenzhen bourse to limit first-day fluctuations
3 July 2009
The Shenzhen Stock Exchange (SSE) announced that it will limit share price fluctuations of small and medium-sized companies on their first day of trading to protect investors, Bloomberg reported. The exchange will suspend trading of newly listed stocks for 30 minutes if they rise or fall 20% from their opening price. Trading of first-day shares will also be halted for another 30 minutes if they fluctuate by 50% or more. The Shenzhen Stock Exchange also said that it could take other measures to limit risks, but did not elaborate. China’s securities regulator has been seeking to revive initial public offerings after a nine-month moratorium.
