Shenzhen Stock Exchange Investment and Education Hotline Questions and Answers on Main Board Stock Trading (Part 2)


Editor's note: Recently, more investors have consulted on the main board stock trading under the registration system through the Shenzhen Stock Exchange Investor Service hotline (400-808-9999). In order to help investors further understand the relevant rules, we have sorted out the recent investor concerns for investors' reference.

 

1. What situations will be implemented when the main board stock bidding trading is temporarily suspended?

A: When investors trade main board stocks with no price rise or fall limit, the Shenzhen Stock Exchange will implement temporary intra-day trading suspension for 10 minutes if one of the following situations occurs in the trading through bidding:

(1) The intraday trading price rises or falls by 30% or more from the opening price of the day for the first time;

(2) The intraday trading price rises or falls by 60% or more from the opening price of the day for the first time;

(3) Other circumstances determined by the CSRC or the Shenzhen Stock Exchange.

Investors need to note that if a stock rises or falls rapidly, directly rising or falling by 60% or more from the opening price of the day, the Shenzhen Stock Exchange will impose a temporary suspension of trading, and no further temporary suspension will be implemented in this direction on the same day. Such as sharp fluctuations in the stock, compared with the opening price of the day up to or more than 30%, 60%, each suspended once, turn down, and compared with the opening price down to or more than 30%, 60%, will also be suspended once, the day at most four times.

 

2. On the first day of listing of new shares on a main board, whether the intraday temporary trading suspension mechanism will be triggered if the intraday bidding price rises or falls by 30% (or 60%) or more?

A: The rise or fall shown in the real-time market is calculated based on the closing price of the previous trading day. For new shares on the first day of listing, the rise or fall is calculated based on the issue price. The first day of the listing of the main Board stocks will trigger the temporary intra-day trading suspension, which shall meet the requirements of Article 4.3.4 of the Shenzhen Stock Exchange Trading Rules (2023 Amendment) when the intra-day trading price rises or falls for the first time by a certain percentage from the "opening price of the day". In other words, the intraday temporary suspension is triggered by the comparison of the intraday trading price to the "opening price of the day", not to the "issue price". Therefore, on the first day of trading, a 30% (or 60%) or more rise or fall in the main board's trading price relative to the issue price will not necessarily trigger a temporary intraday suspension.

For example, the main board stock X was issued at 10 yuan/share and opened at 12 yuan/share on the first day of trading. When the price increase reaches 30% on the first day of bidding, its price is 10× (1+30%) =13.00 yuan/share. However, at this time, the stock will not trigger the temporary trading suspension. When the bid price reaches or exceeds 15.6 yuan/share (that is, 30% higher than the opening price of 12 yuan/share), the temporary trading suspension will be triggered for the first increase of 30% or more.

 

3. Can investors continue to declare during the temporary suspension of main board stocks?

Answer: During the temporary trading suspension, investors can declare, also can cancel the declaration, the day of resumption of the accepted declaration of the implementation of intraday collection bidding.

 

4. What are the disclosure rules of public information of main board stock bidding trading?

A: In one of the following situations when the main Board stock bidding with price limits occurs, the Shenzhen Stock Exchange will publish the names of the securities business departments or trading units of the five members with the largest amounts of buying and selling of the relevant securities on that day and their respective amounts of buying and selling:

(1) The top five main board stocks with a deviation of ±7% from the closing price of the day;

(2) the top five main board stocks whose price amplitude reached 15% on that day;

(3) The top five main board stocks with a turnover rate of 20% on that day.

If the closing price rise or fall deviation, closing price rise or fall, price amplitude or turnover rate is the same, it shall be selected according to the transaction amount and trading volume in turn.

The corresponding sub-index of A-shares on the main board is the Shenzhen A-share index compiled by the Shenzhen Stock Exchange.

There is no limit on price rise or fall in the first 5 trading days after the initial public offering of stocks on the main board. The Shenzhen Stock Exchange only publishes the names of the securities business departments or trading units of the five members with the largest amounts of buying and selling on the first day of listing and their respective amounts of buying and selling.

 

5. What are the situations of the main board stock bidding trading, which belong to abnormal fluctuations?

A: In the main board stock bidding trading, the following circumstances belong to abnormal fluctuations:

(I) The main board stocks in three consecutive trading days within the daily closing price deviation accumulated ±20%.

(2) ST and *ST main board stocks within three consecutive trading days, the daily closing price deviation accumulated to ±12%.

(3) The ratio of the average daily turnover rate of the main board stocks within three consecutive trading days to the average daily turnover rate of the previous five trading days reaches 30 times, and the cumulative turnover rate of the main board stocks within three consecutive trading days reaches 20%.

(4) Other circumstances deemed by the CSRC or the Shenzhen Stock Exchange to be abnormal fluctuations.

In case of the above abnormal fluctuations, the Shenzhen Stock Exchange will publish the names of the securities business departments or trading units of its five members with the largest accumulative amounts of purchases and sales during the abnormal trading fluctuations, as well as their accumulative amounts of purchases and sales respectively. Investors can log on the official website of Shenzhen Stock Exchange.

The abnormal volatility index shall be recalculated from the date of the next trading day or resumption of trading announced by the Shenzhen Stock Exchange. Stocks with no limit on price rise or fall are not included in the calculation of abnormal volatility indicators.

 

6. What are the situations of the main board stock bidding trading, which belong to serious abnormal fluctuations?

A: In the main board stock auction trading, the following circumstances belong to serious abnormal fluctuations:

(I) Four times in 10 consecutive trading days of the main board stocks, "the main board stocks in 3 consecutive trading days, the cumulative daily closing price rise and fall deviation value of ±20%" or "ST and *ST main board stocks in 3 consecutive trading days, the cumulative daily closing price rise and fall deviation value of ±12%" abnormal fluctuations in the same direction;

(II) The cumulative deviation of the daily closing price of the main board stocks within 10 consecutive trading days reaches +100% (-50%);

(III) The cumulative deviation of the daily closing price of the main board stocks within 30 consecutive trading days reaches +200% (-70%);

(4) Other circumstances identified by the CSRC or the Shenzhen Stock Exchange as serious abnormal fluctuations.

For the above severe abnormal fluctuations, the Shenzhen Stock Exchange publishes classified trading statistics of investors and other information during severe abnormal fluctuations.

The index of severe abnormal volatility shall be recalculated from the date of the next trading day or resumption of trading announced by the Shenzhen Stock Exchange. Stocks with no limit on price rise or fall are not included in the calculation of severe abnormal volatility indicators.

 

7. Can the main board stock issued under the registration system be used as the target of margin financing?

A: The main board shares issued in accordance with the Measures on the Registration of Initial Public Offerings can be used as the target of margin financing and short selling from the first day of listing.

Where a risk warning is imposed on the trading of the underlying stock, the Shenzhen Stock Exchange shall adjust the stock out of the scope of the underlying securities as of the day on which the risk warning is imposed.

 

8. Under the registration system, can the main board stocks be used as stock pledge repurchase and agreed repurchase of the underlying securities?

A: In order to prevent the risks of stock pledge repurchase transactions and agreed repurchase securities transactions, and ensure the stable operation of the market, the listed main board stocks are issued in accordance with the Measures for the Registration of Initial Public Offerings of Stocks, and are not used as the underlying securities of stock pledge repurchase and agreed repurchase transactions. Other stocks may continue to be used as stock pledge for repurchase and agreed repurchase of the underlying securities.

 

(Disclaimer: The questions and answers in this column are for the purpose of investor education only and do not constitute investment advice. Investors act accordingly at their own risk. Shenzhen Stock Exchange strives for the accuracy and reliability of the information in this column, but does not guarantee its accuracy, completeness and timeliness, and assumes no responsibility for the losses caused by the use of this column.)

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