The limits for raising and lowering may fluctuate up to 20%
The Shanghai Stock Exchange, in recent days, has announced that its new technology card will have negotiation limits wider than those already existing in the area itself and also in Shenzhen. The shares will then fall or rise 20% in one day before the trade is stopped, compared to 10% in other councils. Furthermore, there will be no daily limits for the first five days of newly listed companies.
According to a previous announcement by the Chinese securities regulator, the board of directors will also allow companies that have yet to make a profit, as well as companies with weighted voting rights, to list their shares.
The new system of the Sganghai stock exchange will attempt to stimulate the technological development of the country
An important turning point for the Chinese stock market. In fact, by loosening the trade restrictions for the new board, the Shanghai Stock Exchange hopes to keep up with the disappointing performance of previous attempts at technology cards, both in Shenzhen and Beijing.
According to the China Securities Regulatory Commission, the new board will focus on emerging sectors such as new energy, biotechnology, production of high-tech equipment, big data and cloud computing.
Once launched, the new system of the Sganghai stock exchange will attempt to stimulate the country’s technological development and “innovative capabilities”, also facing the excessive trade war.
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