On March 8, the prices of “China Development Bank 2009” (Code: 108611) and “China Development Bank 2008” (Code: 108610) saw significant abnormal fluctuations, which skyrocketed by 208.82% and 124.24% respectively. Yields to maturity at closing prices were negative and deviated far from normal valuation, arousing market attention.
To maintain market stability, SZSE released a risk warning notice for “China Development Bank 2009” at noon when the market was closed for lunch, and suspended the trading of “China Development Bank 2008” and “China Development Bank 2009” from 13:52:13 until closing pursuant to relevant provisions of the Trading Rules of Shenzhen Stock Exchange.
The monitoring by SZSE showed that, some investors engaged in abnormal transactions (such as pushing up intraday stock prices and conducting wash sales) during the trading of “China Development Bank 2009”. SZSE imposed a six-month regulatory trading restriction on them in strict accordance with laws and reported the clues of suspected market manipulation to audit agencies in a timely manner.
In the next step, SZSE will continue to conscientiously carry out the policy of “system building, non-intervention, and zero tolerance” and the requirements of “standing in awe of the market, rule of law, professionalism and risks, and obtaining support from various parties”, and make ongoing efforts in transaction regulation and continuously refine bond trading rules, so as to forestall and defuse market risks. Meanwhile, SZSE will urge members to enhance the management of bond trading behaviors by customers to jointly maintain normal market trading order and fully protect the legitimate rights and interests of investors. Once again, SZSE reminds investors to establish risk awareness, adhere to value and long-term investment concepts and conduct transactions in compliance with laws.