Stocks finish mixed amid higher volatility
Updated: 2007-08-08 16:45
The Shenzhen Stock Exchange stepped up efforts in monitoring new shares in their first days. The exchange will send warning letters to brokers that manage stock accounts that have been detected of intensive, continuous, or unreasonably high priced biddings.
Upon receiving a warning, brokers are to take appropriate measures to regulate the trading activities by the subject accounts. If irregular trading continues, the exchange may take actions against them, including limiting and suspending transactions of their accounts.
An official from the exchange reminded smaller investors to learn the lessons from Shenzhen Topband Electronics, whose share price rocketed over four times its starting price on its first day of trading, but plunged deep in the following days, incurring huge losses to investors that have followed the price manipulators.
Analysts believe the move reflects the exchange's caution on the recent new shares listed on its small- and medium-enterprise board. Last Friday, Zhejiang Hongda Warp Knitting rocketed 538 percent to 34.65 yuan on its first trading day. Another new share, CNNC Huayuan Titantium Dioxide saw its share price grow five times from the initial issuing price.
Also aiming at protecting investor interests, the China Securities Regulatory Commission yesterday issued a notification for payment to an investor protection fund from securities brokerages. The commission ordered brokers to pay for the first half by the end of this month.
In April, the securities regulator issue a rule requiring brokerage firms to pay in 0.5 to 5 percent of their operating income, in accordance with their ratings category, to the China Investor Protection Fund Corp, a company set up by the State Council.
China International Capital Corp and Guoxin Securities, the best-rated brokers with AA ratings, are subject to the 0.5 percent rate and expected to pay in 16.38 million yuan and 13.75 million yuan respectively. CITIC Securities, rated with A, needs to pay 58.31 million yuan to the fund.
|
|