Shanghai Stock Exchange Imposes Trading Restrictions on Fujian Port Group Co., Ltd.
During the closing call auction on December 29, 2023, the Shanghai Stock Exchange detected abnormal trading behavior by Fujian Port Group Co., Ltd. while trading Industrial Bank shares. A large amount of transactions were declared at a price that significantly deviated from the latest transaction price of the stock, prompting the exchange to take action.
In response to this irregular activity, the Shanghai Stock Exchange issued a notice on January 6 and January 7, imposing trading restrictions and other disposal measures on Fujian Port Group Co., Ltd. and its four subsidiaries. The regulatory measures will include the suspension of trading on the securities accounts under the names of relevant investors starting from January 2, 2024, and a restriction on trading for 6 months.
The exchange’s decision comes as a result of the abnormal trading behavior exhibited during the closing call auction on December 29, 2023. It was determined that the large amount of transactions at a significantly different price from the latest transaction price of the stock constituted abnormal trading behavior.
This move is aimed at maintaining market stability and integrity, as well as ensuring fair and transparent trading practices. The Shanghai Stock Exchange’s action serves as a reminder to all market participants to adhere to regulations and guidelines to prevent any form of market manipulation or irregular trading behavior.