Los Angeles, Aug 6 (Newswire): The Shanghai Stock Exchange is considering new rules that would add a special tag to shares of firms with two or more years of consecutive losses and make delisting stocks easier, according to a state media report.
Under a draft proposal unveiled, companies with two straight years of losses would see their Shanghai-listed shares labeled "under special treatment."
The so-called special treatment shares would be limited to daily gains of 1% and daily drops of 5%, compared to regular-share limits of 10% on either side of their previous close, the Xinhua news agency report said.
Shares of companies in this category would be flagged with "ST" by the exchange, while those with three or more straight years of losses would receive an "*ST," the report said. The move is meant to curb excess speculation and better protect investors, Xinhua reported.
Under a draft proposal unveiled, companies with two straight years of losses would see their Shanghai-listed shares labeled "under special treatment."
The so-called special treatment shares would be limited to daily gains of 1% and daily drops of 5%, compared to regular-share limits of 10% on either side of their previous close, the Xinhua news agency report said.
Shares of companies in this category would be flagged with "ST" by the exchange, while those with three or more straight years of losses would receive an "*ST," the report said. The move is meant to curb excess speculation and better protect investors, Xinhua reported.
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