Several ChiNext Stocks Suspended on Suspicion of Investor Speculation
What’s new: Trading in several stocks on the ChiNext board of the Shenzhen Stock Exchange has been temporarily suspended on signs of abnormal speculative activity.
Since late August, the exchange has suspended trading of Xinjiang Tianshan Animal Husbandry Bio-Engineering Co. Ltd., Zhengzhou Sino-Crystal Diamond Co. Ltd. and Shenzhen Changfang Group Co. Ltd., the bourse announced Tuesday (link in Chinese).
The exchange found that the market caps of the three companies’ shares in circulation were relatively small and their shares were priced low, but that they surged in a relatively short period, showing signs of being subject to speculation.
What’s the background: Shares in Xinjiang Tianshan surged 494.5% (link in Chinese) from Aug. 19 to Sept. 8 with a turnover rate of 283.7%, the company said in a filing.
According to stock exchange data, small and midsize retail investors bought shares in Zhengzhou Sino-Crystal worth a combined 3.2 billion yuan ($468 million) between Aug. 24 and Sept. 8, accounting for nearly 70% of the total value of shares in circulation.
Shares of Shenzhen Changfang surged 107.2% (link in Chinese) from Sept. 2 to Sept. 7, the company said in a filing.
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