Is it reasonable for the A share exchange to issue a regulatory letter to restrict trading of stocks

Mondo Finance Updated on 2024-01-30

Title: Investor Concerns: Exchange Intervention and the Dispute over Free Buying and Selling in the Market.

In the A** market, investors are often confused and suspicious about the exchange's intervention in ** trading. The long-term ** has continued to rise and fall when good or hot spots appear, which has caused a lot of speculation and questions. Some argue that exchanges intervene and regulate in the face of unusual volatility, but choose to turn a blind eye to long-term volatility.

*The core principles of the market are mentioned, which is that it should be free to buy and sell and be self-responsible. However, the exchange's administrative intervention focused only on the upside and ignored the downtrend, causing widespread controversy. Critics point out that the exchange's oversight is not in place, and the focus on monitoring the number of days of gains is often switched at random, causing investors to question it. They cited cases such as Shenglong, Zhenshitong, etc., which have not been supervised for continuous daily limits, but have issued regulatory work letters to Sichuan Jinding, which has a small number of daily limits, accusing this of being a manifestation of artificial intervention in the market.

The author reflects on this regulatory model, proposes a comparison of the regulatory approaches of other countries around the world, and points out that regulators in other countries do not arbitrarily intervene in market behavior. The article emphasizes that even if small-cap stocks are suppressed too quickly, it will not attract funds to flow into heavyweight stocks, and calls on exchanges to pay more attention to how to formulate stable capital market rules, improve the quality of listed companies and standardize short-selling behavior, so as to promote the stable development of the market more meaningfully.

To sum up, the article focuses on the issue of the exchange's intervention in the trading behavior, and makes a profound criticism and reflection on the unreasonable practices of the regulator. The article calls for attaching importance to the principle of free trade and seeking a more reasonable regulatory direction to promote the healthy and stable development of the market.

Related Pages