BEIJING, Nov 6 (Reuters) - China’s securities regulator announced plans on Tuesday to strengthen supervision of listed firms’ share trade suspensions, as part of wider efforts to improve corporate governance in the world’s second largest economy.
Companies listed on China’s stock exchanges will not be allowed to issue random share trade halts and suspension periods will be shortened to increase market liquidity, the China Securities Regulatory Commission said on its website www.csrc.gov.cn.
There will be stricter requirements for information disclosure related to share trade suspensions and resumption, the regulator said.
China’s exchanges have been tightening controls over share trading suspensions after more than half of the 3,000-plus listed firms halted trading during the market crash in 2015, raising concerns among investors about a tendency by Chinese firms to suspend trading of their shares for too long.
Reporting by Min Zhang in Beijing and Lee Chyen Yee in Singapore Editing by Susan Fenton