Shanghai Stock Exchange Will Step Up Scrutiny of Irregular Transactions


The Shanghai Stock Exchange plans to increase the strictness of benchmarks for irregular transactions, as well as take greater pains to prevent undue market fluctuations.

Securities Times reports that senior executives from the SSE including exchange president Huang Hongyuan (黄红元) have spent the past two weeks conducting meetings in Shanghai, Shenzhen, Chongqing and Beijing to outline the exchange’s key work plans for 2018.

The “Shanghai Stock Exchange 2017 President’s Work Report (上海证券交易所2017年总经理工作报告) said that the exchange will “doggedly contain irregular transactions, vigorously uphold healthy and orderly transaction procedures, and firmly prevent major fluctuations on the share market” in 2018.

The SSE will also “strengthen regulation of substantive information disclosures, prevent major risk involving listed companies…continue to expand regulatory vigour, implement special actions to raise the quality of listed companies, and strengthen the regulation of the disclosure of financial information.”

The exchange has further indicated that it will raise its on-site inspection capabilities for both listed companies and companies applying for IPO’s, strengthen risk controls for new businesses and products of members, and drive the development of “across-the-board” account regulatory systems for its initiatives to connect the exchange to bourses in Shenzhen and London.