Sept. 11 — Beijing Stock Exchange said it has restricted trading on the
securities accounts of three investors for three months after finding they
privately acquired IPO allotments and arranged profit-sharing during the
new-share subscription phase. The investors paid fixed fees or agreed to split
IPO proceeds to lock returns and shift risk, bypassing public trading venues.
The exchange said the conduct disrupted new-share issuance order and violated
rules requiring publicly issued securities to trade on established exchanges.
The self-regulatory sanction, the exchange added, signals tougher enforcement to
protect market fairness and investor rights.
