(This article is from China Economic Review, and we put it here only for our internal members to study and research. If it violates the author’s copyright, please send e-mail to general@chinawealthplanning.com, and we will delete it immediately.)

The Shenzhen Stock Exchange has introduced a new rule aimed at controlling speculative trading of debuting stocks on the soon-to-be launched Growth Enterprise Market, the South China Morning Post reported. 

According to the new rule, a stock will be suspended from trading until 2:57pm, three minutes before closing, if its shares rise or fall 80% from the opening price on first day of trading. 

Trading will be suspended for 30 minutes if a newly listed stock gains or loses more than 20% from the opening price and the exchange will halt trading for a further 30 minutes if the shares rise or fall 50%. 

The securities regulator is due to officially launch the Nasdaq-style exchange in October.

The content of this article is general in scope and is not intended to be comprehensive. It is not a substitute for investment advice.

Published on our website on Sept.28, 2009