中国股市奇观：一度仅3%上市公司可交易

choi

Gregor Stuart Hunter and Wayne Ma, 中国股市奇观：一度仅3%上市公司可交易. 华尔街日报, July 22, 2015
http://cn.wsj.com/gb/20150722/mkt085532.asp

, which is translated from

Gregor Stuart Hunter and Wayne Ma, Chinese Limits Cut Stock Trading. Wall Street Journal, July 22, 2015.
http://www.wsj.com/articles/how- ... -plunged-1437472552

Quote:

(a) "HONG KONG—China may have the world’s second-biggest stock market after the U.S., but at one point during a roller-coaster ride for investors this month only 93 of 2,879 listed companies were freely tradable—about the same number as trade in Oman.

"On July 9, a day after the market hit bottom, just 3.2% of Chinese-listed companies could be traded normally, according to an analysis by The Wall Street Journal using FactSet data. The rest of the shares on the Shenzhen and Shanghai stock exchanges either were suspended or hit their daily limit. China’s market rules prevent share prices from moving freely once they rise or fall by 10%.

"The findings are supported by an independent analysis by Gottex Fund Management, done at the behest of the Journal.

(b) "Most markets, including the New York Stock Exchange, employ 'circuit breakers' to prevent wild swings in share prices over a short period, which can happen as a result of rapid-fire trading algorithms or human error. But in China, the limit rule was impeding trading of many companies at the same time investors were locked out of hundreds more that used an exchange rule allowing them to apply for trading halts ahead of major news that might cause a drastic price fluctuation.

"At the height of suspensions, 51% had taken themselves off the market, according to the Journal’s analysis. An additional 46% were halted because of limit rules.

My comment: There is no need to read the rest.