Supervision and Management for Prompt Reaction(2007-04-16)
	Owing to the abnormal trading of "*ST Sichuan Changjiang Packaging Holding Co., Ltd." (600137) and "*ST The First Investment & Merchant Co., Ltd." (600515) on the morning of April 13, the Shanghai Stock Exchange (SSE) suspended trading of these two stocks on the afternoon of the same day. It is learnt that the SSE Listed Company Department and the Market Surveillance Department have jointly taken measures. In a letter to the two companies following the trading suspension, the SSE Listed Company Department required them to make timely announcements to disclose risks and imposed continuous trading suspension on "*ST Sichuan Changjiang Packaging Holding Co., Ltd." till the day when its 1st quarter report of 2007 is disclosed. Meanwhile, the Market Surveillance Department investigated the abnormal trading that morning and especially paid close attention to large-volume accounts in rapid price increase of "*ST Sichuan Changjiang Packaging Holding Co., Ltd.". In its letters of investigation assistance to the securities business departments of those accounts according to regulations of the trading rules, it required relevant business departments to fully cooperate with its work. Meanwhile, relevant securities companies are required to attach great importance to the event and cooperate with customer management. The SSE clearly showed that it would request the China Securities Regulatory Commission (CSRC) for investigation according to relevant working procedures if the two shares were found to be suspected of violating regulations and laws through preliminary investigation and analysis. The SSE has paid close attention to the recent active trading on the market, especially those abnormally active single stocks which published good news including assets reorganization and significant contracts. It also conducted, according to rules, off-site investigation on some abnormally active large-volume accounts and their business departments. From this January to March, the SSE conducted more than 100 investigations on abnormal trading, with nearly 200 securities business departments involved. It also requested the CSRC to put "Zhejiang Hangxiao Steel Structure Co., Ltd." and "S&P Pharmaceutical Co., Ltd." on file for investigation on their behaviors suspected of violating laws and regulations. In addition to sustained supervision of information disclosure and trading behaviors, the SSE also cautions investors to be risk-conscious in their investment and analyze relevant information so as to recognize the potential market risks and reject irrational scalping.
Source:Shanghai Securities News
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