What’s going on here?
The Shanghai
Stock
Exchange is probing the rollercoaster trading of Nanjing Chemical Fibre following major price swings on Monday.
What does this mean?
Nanjing Chemical Fibre saw its shares yo-yo, jumping 10% to 8.34 yuan before plummeting to 6.82 yuan by mid-afternoon, and closing with a 10% loss. The wild ride coincided with an eerily accurate prediction on the financial platform Hithink RoyalFlush Information Network, catching the exchange’s eye. Nanjing Chemical Fibre said its operations were stable, suggesting speculation caused the swings. The Shanghai Stock Exchange is now reviewing the transactions, especially after a user confidently foretold the stock’s movement, stating, ‘(Nanjing Chemical Fibre’s stock) will give you a surprise at 14:34.’
Why should I care?
For markets: Guarding against foul play.
China’s securities regulator vowed in March to ramp up actions against market misconduct. The Nanjing…
