SSE Cracks Down on Trading of Irregular Accounts(2007-05-08)
	Excessive short-term scalping looms as a more and more serious problem due to the increasingly active trading on the securities market. In its real-time trading supervision, the Shanghai Stock Exchange (SSE) has repeatedly found that some accounts push up stock prices through large-volume and continuous purchase and withdrawal orders. All this, a severe impact on the normal supply and demand of the securities market, has violated the system of market trading by misleading other investors. In its caution letters and interviews, based on several rounds of investigation on the phenomenon, to relevant securities business departments and the headquarters of securities companies, the SSE required them to inform customers of stopping irregular trading, or else trading restriction measures would be taken. However, the efforts didn't pay off well. In the trading on April 30, the SSE again found two abnormal individual accounts at the East Shipai Road Business Department in Guangzhou of Wanlian Securities Co., Ltd. The two accounts, with repeated large-volume purchase and withdrawal orders of a certain stock, had greatly influenced the stock's prices. In line with the supervision guidelines of the China Securities Regulatory Commission, the SSE, to further strengthen its punishment according to the trading rules, imposed trading restriction on the accounts that defied prior warning. The SSE said that more measures including trading restriction would be taken to crack down on illegal trading for market order protection.
Source:Shanghai Securities News
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