Hong Kong Stock Connect means that investors entrust members of the Shanghai Stock Exchange to report to the exchange through the securities trading service company of the Shanghai Stock Exchange and buy and sell stocks listed on the Shanghai Stock Exchange within the prescribed scope. Bian Xiao compiled the knowledge of Hong Kong Stock Connect here for your reference. I hope everyone will gain something in the reading process!
1. Will the shares of Hong Kong Stock Connect be suspended due to stock price fluctuation during trading hours?
A: Although there is no price limit system in the stock exchange market, there is still a market monitoring mechanism for the fluctuation of stock price and trading volume.
If the stock exchange finds abnormal fluctuations in the share price or trading volume of listed issuers through market monitoring, or the media releases reports that may affect the share price or trading volume of listed companies, or there are related rumors in the market, then the stock exchange will contact listed companies in order to maintain fair and orderly market. A listed company must respond to this immediately, fulfill its continuous disclosure obligations under the Listing Rules, and publish relevant information in a timely manner, so as to avoid false information on its shares or any inside information that should be disclosed according to the provisions of Part XIVA of the Securities and Futures Ordinance, and ensure that such information can be released fairly. If a listed company is not aware of any events or trends that will or may lead to abnormal fluctuations in its share price or trading volume, it should publish an announcement on the easy-to-disclose website as soon as possible to explain the situation. If the listed company publishes relevant announcements in time, there is no need to suspend trading or suspend trading for a short time.
If circumstances require, for example, it is found or suspected that the change of stock price or trading volume is caused by the disclosure of some inside information that should be disclosed according to Part XIV of the Securities and Futures Ordinance, the listed company shall immediately publish relevant information or any inside information that should be disclosed according to Part XIV of the Securities and Futures Ordinance. Otherwise, the shares of listed companies may be temporarily suspended or suspended by the stock exchange, and will resume trading after the announcement.
"Changes in share price or trading volume" of a listed company refers to the abnormal performance of the share price and/or trading volume of a listed company without obvious reasons. For example, the market fell, but the company's share price rose sharply, or the turnover suddenly increased. As to whether the fluctuation range of stock price or trading volume is "abnormal", the Stock Exchange will make a judgment with reference to the past performance of the stock concerned, or the performance of other stocks in the industry to which the stock belongs, and the overall market situation.
2. Will 2.SEHK take the initiative to suspend or delist listed companies?
A: A stock exchange may order a listed company to suspend trading, listing or delisting for a short period of time under the circumstances and conditions it deems appropriate. Specific circumstances, such as: the issuer (listed company) fails to comply with the provisions of the listing rules, and the situation is serious; The issuer's shares are not publicly held; The business activities or assets of the issuer are insufficient to maintain the listing of its securities; The issuer or its business is no longer suitable for listing.
For companies listed on the main board, if their suspension lasts for a long time, but they don't take enough actions to win the resumption of trading, it may lead to delisting, that is, the company's shares will be delisted.
First, the Stock Exchange may apply for the procedures stipulated in the Guidelines in accordance with Rule 17 of the Listing Rules for Main Boards to delist the main board companies that have serious financial difficulties and/or have failed to maintain adequate business operations for a long time. If the listed company's securities have been suspended for six months or more and fail to meet the requirements of the main board listing rules, then the stock exchange will decide whether the company needs to enter the second stage of delisting procedures. Listed companies entering this stage will have six months to submit feasible resumption plans to the Stock Exchange. If the listed company fails to submit a feasible resumption plan within the time limit, it will enter the third stage of delisting procedure. After entering the third stage of delisting procedure, listed companies will have the last six months to submit feasible proposals for resumption of trading to the Stock Exchange. If the issuer fails to submit a feasible resumption plan at the expiration of this stage, the listing status of the listed company will be cancelled, that is, delisted.
Secondly, if the company is involved in the investigation by the regulatory authorities, there are improper accounting treatment, unpublished financial results or serious defects in internal control, so that it is suspended in accordance with the listing rules, then in order to maintain fair and orderly market and open information, listed companies will also be suspended.
Third, the stock exchange can also delist the main board company according to Article 6. 10 of the main board listing rules. For example, if the stock exchange thinks that the main board company or its business is no longer suitable for listing, the stock exchange will issue an announcement, announce the company name and list the time limit, so that the company can remedy the matters that make it unsuitable for listing within the time limit.
For example, except for "investment companies" defined in Chapter 2 1 of the Listing Rules of the Main Board and listed companies mainly or only engaged in securities brokerage business, if all or most of the assets of the company are cash or short-term securities, the stock exchange will consider it unsuitable for listing and suspend its trading. During the suspension period, if the company engages in business suitable for listing, it may apply to the stock exchange for resumption of trading. The Stock Exchange will regard its application for resumption of trading as a listing application submitted by a new applicant. In this case, if the company's suspension lasts more than 12 months, or the stock exchange considers it necessary, the stock exchange has the right to cancel the company's listing qualification.
3. What is the process of resumption of trading after the suspension of Hong Kong Stock Connect?
A: According to the listing rules of stock exchanges, the shares of listed companies should be traded continuously as much as possible. Therefore, suspension of trading is only a means to deal with potential and actual market special circumstances. Even if you need to suspend trading, you should try to shorten the suspension time.
If the company is suspended by the stock exchange, the listed company shall issue a brief announcement to the market, explaining the reasons for the suspension, so as to increase market transparency. The Stock Exchange will also maintain continuous contact with listed companies during the suspension period and require listed companies to make an announcement before the stock resumes trading.
The specific resumption procedures will depend on the circumstances, and the Stock Exchange reserves the right to attach conditions it deems appropriate. Under normal circumstances, when the listed issuer issues an appropriate announcement, or the specific reasons for its short suspension or suspension are no longer applicable, the stock exchange will allow the company to resume trading; In other cases, the temporary suspension or suspension will continue until the issuer meets all the requirements for resumption of trading.
4. Will the listed companies on the Stock Exchange resume trading immediately after issuing the clarification announcement?
A: Listed companies on the stock exchange can resume trading at the beginning of the next trading session after releasing any information or insider information, so as to avoid the false market of their shares. The relevant announcement should have enough information to make the relevant stocks resume trading in a fair way, and the relevant information has been widely known in the market.
5. How do investors deal with the suspended stocks of companies listed on the stock exchange?
A: After the company's shares are temporarily suspended or suspended by the stock exchange, investors can't buy or sell temporarily during the suspension period. Investors who hold the stock should pay close attention to the latest announcement issued by the listed company through the website of "Disclosure Easy" to obtain the information of the company's stock resumption. If a listed company on the Main Board or Growth Enterprise Market suspends trading for 3 months or more, investors can check the "Long Suspension Company Report" in the column of "Issuer Related Information" through the "Disclosure Easy" website to learn about the monthly report of the listed company.
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