China to Restrict Trading Halts, Report Says, Boosting MSCI Odds
- Exchanges set to publish new rules as early as next week
- Stock suspensions seen as hurdles for China in MSCI inclusion
People stand in front of an electronic board displaying share prices at a securities exchange house in Shanghai, China, on Monday, Feb. 15, 2015. China's stocks fell as trading resumed after a week-long holiday which saw global equities enter a bear market on concern over the strength of the world economy.
Photographer: Qilai Shen/BloombergShanghai and Shenzhen stock exchanges will publish new rules on trading halts as early as next week, the China Securities Journal reported, a move that would raise the odds of the country’s stocks being included in MSCI Indexes.
The rules are aimed at curbing arbitrary trading halts by companies listed in China, so-called A shares, and limiting the trading-halt period, the report said on Tuesday, citing an unidentified official at Shanghai Stock Exchange. Some public companies abuse the current system to announce merger and acquisition plans to push up stock prices and then say the deals fail, the report said.