Shanghai and Shenzhen Stock Exchanges Implement Measures to Enhance Market Vitality and Convenience
Xinhua News Agency, Beijing, August 11th – In a recent article published by the China Securities Journal, it was reported that the Shanghai and Shenzhen Stock Exchanges have introduced several measures to improve the trading system and optimize trading supervision. These measures aim to stimulate market vitality, enhance transaction convenience and smoothness, and increase market attractiveness.
On the evening of August 10th, the Shanghai and Shenzhen Stock Exchanges launched a series of measures to enhance the trading system. One of these measures includes adjusting the number of declarations for stocks, funds, and other securities listed on the main board of the Shanghai Stock Exchange and Shenzhen-listed stocks. The adjustment changes the trading increment from integer multiples of 100 shares to 100 shares increments. Additionally, the introduction of after-hours fixed price trading mechanism for ETFs is also being studied.
Tian Lihui, dean of the Financial Development Research Institute of Nankai University, believes that reducing the number of securities declarations can result in reduced transaction costs, improved capital efficiency, and increased market liquidity. The introduction of after-hours fixed price trading for ETFs can diversify trading methods, expand trading time, and enhance market convenience. Lastly, optimizing transaction supervision can promote standard disclosure, maintain stable operation, and enhance market transparency.
According to industry insiders, the adjustment of the trading system is a common trend in overseas markets, with many markets adjusting the minimum trading unit to 1 share. The Shanghai and Shenzhen Stock Exchanges believe that this adjustment will reduce the cost of trading high-priced stocks for investors, facilitate diversification of investments, and improve the efficiency of fund utilization. It will also enhance the activity and liquidity of the stock and fund markets.
The introduction of after-hours fixed price trading for ETFs is currently limited to stocks on the Science and Technology Innovation Board and ChiNext. Extending this trading mechanism to ETFs would be of great significance to the development of the ETF market, providing convenience for investors to trade at the closing price.
Optimizing transaction supervision is another important measure taken by the Shanghai and Shenzhen Stock Exchanges. They aim to enhance regulatory transparency by promoting the disclosure of regulatory standards, releasing English versions of transaction regulatory business rules, and strengthening rule publicity and investor education. These measures will crack down on illegal transactions, prevent excessive speculative risks, and create a market ecological environment for active and orderly operations.
The Shanghai and Shenzhen Stock Exchanges have conducted training on compliance transactions and business rules for securities companies, fund companies, insurance institutions, and other organizations in recent years. The increased publicity of the rules will improve the predictability and recognition of transaction supervision by market players, thereby stimulating market vitality and enhancing market resilience.
By implementing these measures, the Shanghai and Shenzhen Stock Exchanges aim to enhance trading convenience and smoothness, and promote a more active and transparent market environment.