20 October 2019

Shenzhen bourse acts on inappropriate speculation, paper says

The Shenzhen Stock Exchange will blacklist listed firms engaged in inappropriate speculation as part of its efforts to strengthen market supervision, Shanghai Securities News reported Monday, citing an unnamed bourse official. The firms in question have been actively investing in non-core businesses to fuel rumors of acquisition and reorganization, and once the stocks of those companies shoot up, the firms’ shareholders unload their stakes for hefty profits, according to the newspaper. The bourse will disclose more information to investors on stocks under speculation risk, the report said.

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