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Timely move to protect investors necessary

China Daily | Updated: 2023-11-30 08:10
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The Beijing Stock Exchange issued a notice on Monday to say it was strengthening trading supervision. It mentioned that from Nov 20 to 24, the BSE took 93 self-regulatory measures such as issuing oral warnings, paying regulatory attention and sending warning letters for some abnormal trading behavior. It said it will monitor some companies that have registered abnormal growth in recent days, while urging members to strengthen management of customer trading behavior, and timely remind investors of transaction risks.

From Oct 24 to 27, among 232 stocks listed on the BSE, the value of 68 rose by more than 100 percent and that of 14 stocks by more than 150 percent. The BSE has only been open for two years, and its valuation level has generally been low. Not many investors recognize that there are only a few million qualified investors in the BSE.

On Sept 1, the China Securities Regulatory Commission issued a document proposing to build the Beijing Stock Exchange into a mature, efficient, brand-attractive and market-influential exchange in five to 10 years. Thanks to such policy support, funds have started pouring in. The boom in the market has also attracted speculative funds. Some short-term funds that chase profits are causing some stocks to rise abnormally, even deviating from the fundamental value of the enterprise. If the market regulators do not pay attention to this in a timely manner, once the short-term investors make profits and pull out their money, it will leave a mess behind that is harmful to the BSE's development.

Faced with this situation, the regulators are taking action to protect ordinary investors. Ordinary investors, too, should be vigilant against speculative stocks.

The regulatory authorities' intervention aims to reduce the risks of stock trading, but it will not change the general trend of the BSE's development. Under the policy of an active capital market, a considerable number of high-quality companies with "specialty, specialization, and innovation" will land on the BSE in the future, and incremental funds will also pour in.

-Beijing News

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