Global EditionASIA 中文雙語Fran?ais
    Business
    Home / Business / Finance

    Trading cap end unlikely in short term

    By Wang Yanfei | China Daily | Updated: 2019-01-15 10:03
    Share
    Share - WeChat
    An investor checks stock prices at a brokerage in Fuyang, Anhui province. [Photo by Lu Qijian / For China Daily]

    While removing the trading cap on the limit on how much a stock can gain on its trading debut adds some positive signs to further reforms of China's capital market, the move is not likely to take place in the short term as the Chinese mainland stock market is not yet fully mature.

    Yang Delong, chief economist with Qianhai Open Source Fund Management, said removing the maximum permissible limit on the first day of trading is necessary and will become a significant step forward in the market reform of the IPO pricing scheme and alleviate the significant fluctuation of stock prices.

    "The current limit only works on the first trading day and yet does not help to reflect a reasonable price-earnings ratio afterward - shares often climbed too quickly days after companies made their debut," he said.

    The remarks came after a senior official with the nation's top securities regulator discussed such a move.

    "We should study and consider the possibility of removing the first day trading cap for new stocks, because pricing restrictions of such a kind cannot accurately reflect the price of the shares with low trading volumes in the first couple of days," said Fang Xinghai, deputy head of China's Securities Regulatory Commission, during a forum held over the weekend.

    The rule came into force in 2014. The limit is set to prevent speculative behavior and yet did not help much as speculators could mobilize the stock prices to rise to unreasonable high levels using a small amount of capital, disturbing market liquidity.

    Some analysts said they expected more reform steps were needed before removing the trading limit.

    Song Qinghui, an independent economist, said a sudden move to remove the cap would cause market instability at the time when the market is dominated by retail investors and lacks sufficient regulations for information disclosure.

    "More efforts to improve market regulation are needed before taking the step to remove the trading cap," he said.

    Echoing his remarks, Qin Peijing, a strategist with Citi Securities, said the current limitation remains a key protective measure for retail investors.

    The skyrocketing of stock prices on the first trading day has to do with distorted pricing schemes, he said.

    Top
    BACK TO THE TOP
    English
    Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
    License for publishing multimedia online 0108263

    Registration Number: 130349
    FOLLOW US
    CLOSE
     
    色综合久久无码中文字幕| 人妻无码中文字幕免费视频蜜桃| 久久亚洲精品无码观看不卡| 中文字幕人妻无码一区二区三区 | 精品亚洲欧美中文字幕在线看| 久久久久亚洲AV无码网站| 制服丝袜日韩中文字幕在线| 人妻中文无码久热丝袜| 精品三级AV无码一区| 亚洲日韩中文无码久久| 最近免费中文字幕大全免费版视频 | 亚洲中文字幕不卡无码| 国产高清中文手机在线观看| 亚洲精品无码av天堂| 本道天堂成在人线av无码免费| 无码一区二区三区免费| 中文字幕无码一区二区免费| 亚洲日韩VA无码中文字幕| 中文字幕在线观看亚洲| 中文字幕日韩精品无码内射 | 性色欲网站人妻丰满中文久久不卡| 久久久无码精品亚洲日韩按摩| 无码孕妇孕交在线观看| 亚洲精品中文字幕无码蜜桃| 潮喷失禁大喷水无码| 久久亚洲日韩看片无码| 国产aⅴ无码专区亚洲av麻豆| 无码人妻丰满熟妇啪啪网站| 亚洲色无码播放| 免费无码国产欧美久久18| 中文字幕欧美日本亚洲| 中文字幕不卡亚洲| 久久亚洲AV无码精品色午夜麻豆| 在线中文字幕精品第5页| 无码H黄肉动漫在线观看网站| 久久亚洲精品无码aⅴ大香| 亚洲中文字幕久久精品无码喷水| 亚洲AV无码国产丝袜在线观看| 午夜福利无码不卡在线观看| 久久久久成人精品无码中文字幕| 狠狠躁狠狠躁东京热无码专区|