The risk warning board planned for launch next year

A risk warning board to control and monitor trading risks in the stock market will be launched next year, according to a statement by the Shanghai Stock Exchange on July 30.

A draft guideline was released by the Shanghai Stock Exchange on July 27 asking for public feedback on planned adjustments after the launch of the board.

According to the proposed adjustments, listed companies operating at losses for two consecutive years will be labeled as "under special treatment" (ST shares) and those operating at losses for three consecutive years will be marked as "*ST shares", and both "ST" and "*ST" companies face delisting to warn investors of the potential risks in trading such shares.

The daily price upper limit of "ST shares" will be adjusted to 1 percent, while the price down limit will be narrowed to 5 percent.