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6.1 The Exchange exercises intense monitoring on the following unusual trading practices that may affect the price or volume of securities:
(1) large purchase or sales of securities before disclosure of any information that may significantly affect the trading price of the relevant securities;
(2) large or frequent trades between the securities accounts opened with the same identity certificate, business license or other valid certificate;
(3) large or frequent trades between the securities accounts through which the same institution or individual conducts trading on behalf of others as instructed or authorized;
(4) large or frequent trades between two or more fixed securities accounts or suspected associated securities accounts;
(5) huge orders, successive orders or concentrated orders for the purpose of affecting the trading price of securities;
(6) frequent placement or cancellation of orders for the purpose of affecting the trading price of securities or the investment decision-making of other investors;
(7) enormous order whose quotation price clearly deviates from the recent execution price;
(8) large and successive orders during a certain period;
(9) large or frequent turnaround trades at the same or similar price;
(10) large or frequent "buy high, sell low" trades;
(11) trades are conducted by anyone contrary to the investment analysis, forecast or advice released by itself;
(12) false orders or other orders in block trades that disrupt the orderly market; and
(13) other unusual trading practices as recognized by the Exchange that need to be put under intense monitoring.
6.2 Where an Exchange member discovers its clients involved in any of the unusual trading practices as enumerated in Section 6.1 and believes such practice may lead to market disorder, it shall alert the relevant clients of the issue and report to the Exchange in a timely manner.
6.3 In case the occurrence of any of the unusual trading practices as enumerated in Section 6.1 has serious effect on the trading price or trading volume of securities, the Exchange may conduct site inspection or non- site inspection and require relevant member firms and the involved brokerage departments to provide such information on the relevant clients like the power of attorney, cash deposit and withdrawalrecords, deposit balance and a statement of relevant trades. The Exchange may also directly require relevant investors to provide such information.
6.4 Exchange members, their brokerage departments and investors shall coordinate with the Exchange in its inspection and provide relevant documents and information timely, truthfully, accurately and completely.
6.5 In severe cases of unusual trading practices, the Exchange may take the following measures in accordance with specific circumstances:
(1) oral or written warning;
(2) arranging for a talk;
(3) a written commitment required ;
(4) restricted trading through relevant securities accounts:
(5) applying to the CSRC for freezing relevant securities accounts or cash accounts; and
(6) proposal filed with the CSRC to take investigation and enforcement.
Any institution or individual objecting to the foregoing measure (4) may apply to the Exchange for a review within 15 days from the date of receiving the above notice of enforcement. The enforcement will not be suspended during the review period. |
