Shanghai and Shenzhen stock exchanges to regulate trading suspensions
22 November, 2018
Both the Shanghai and Shenzhen stock exchanges successively issued guidelines to regulate listed companies’ suspension of trading on Wednesday night, seeking more public opinion on the issue, Yicai.com reported.
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.
According to the detailed guidelines, listed companies can suspend trading for issuing shares during restructuring and the suspension time should be no more than 10 trading days.
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.
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.