SZK [2006] No. 69
All member units:
“ Vanke HRP1 ”(Securities code: 038002) will stop trading on August 29, 2006. As of August 15, the closing price of the warrant was 0.070 yuan. In view of the low market price of the warrant, and the theoretical value calculated according to the Black Scholes model is 0, in order to prevent market risks, maintain market trading order, and protect the legitimate rights and interests of investors, in accordance with the provisions of the Interim Administrative Measures of Shenzhen Stock Exchange for Warrants and the Trading Rules of Shenzhen Stock Exchange, The Exchange will implement key monitoring and risk control measures for the warrant. The relevant matters are hereby notified as follows:
1、 From August 16 to August 28, 2006, the Exchange implemented the real-time risk warning and temporary suspension system for the abnormal intraday price rise of "Vanke HRP1" transactions:
1. On the trading day before "Vanke HRP1" when the closing price is above 0.010 (including 0.010 yuan), when the intraday price increases by 50% compared with the previous closing price, the Exchange will issue a risk warning; When the intraday price increases by 80% compared with the previous closing price, the Exchange will temporarily suspend trading for 15 minutes; When the intraday price increases by 100% from the previous closing price after the resumption of trading, the Exchange will temporarily suspend trading until the market closes;
2. On the trading day before "Vanke HRP1" when the closing price was lower than 0.010 yuan, when the intraday price rose 0.005 yuan from the previous closing price, the Exchange issued a risk warning; When the intraday price rises by 0.008 yuan from the previous closing price, the Exchange will temporarily suspend trading for 15 minutes; When the price rises by 0.010 yuan from the previous closing price after the resumption of trading, the Exchange will temporarily suspend trading until the market closes.
If the above temporary suspension time exceeds the closing time, the Exchange will resume the closing call auction in the last three minutes; During the period of temporary suspension of trading, investors may continue to declare or cancel the declaration.
2、 The Exchange will monitor the market transactions of "Vanke HRP1" in real time, investigate and deal with investors and relevant member units who deliberately manipulate the transaction price in accordance with relevant regulations, and restrict the warrant transactions of relevant accounts when necessary.
3、 All member units shall, in strict accordance with the Interim Measures for the Administration of Warrants of Shenzhen Stock Exchange, the Trading Rules of Shenzhen Stock Exchange and the provisions of this Circular, do a good job in the publicity and risk education of relevant rules and systems, and practically strengthen the regulation and management of investors' warrant trading behavior.
Notice is hereby given
Shenzhen Stock Exchange
August 15, 2006
