Description
As Chinese official took drastic measure over the last two week to slow the free fall equity market, the number of stocks that ceased trading activities spiked. At the peak on July 8th, 1347 stocks were suspended which represented 49% of the total number of stocks and 31% of market capitalization. Suspensions have since come down as volatility and trading volumes have ebbed. During this time, at most two stocks were suspended due to price changes beyond the legal limit (股价异动). Most stocks were suspended due to the euphemistic reasons of “major issues” (重大事项) or “major asset restructurings” (重大资产重组).
Stock trading suspensions in Shanghai and Shenzhen, as percent of total number of stocks and as percent of total market capitalization
Source: Wind
