Recently, the prices of a small number of ChiNext Board-listed stocks with small circulation market capitalization, low prices, and poor fundamentals such as Tianshan Bio, Sino Diamond, and Changfang Group have risen rapidly in a short term, revealing a relatively prominent speculation, which has attracted great attention from the market. On August 27, Tianshan Bio reached the severe abnormal fluctuation threshold. Therefore, SZSE required the company to suspend trading for inspection in accordance with the ChiNext Board listing rules and continues to impose intensive monitoring on trading of the stock.

During the monitoring, it was found that some investors behave abnormally in the process of trading Tianshan Bio and other stocks. SZSE took strict supervision measures against relevant investors, comprehensively investigated their transactions, and reported clues of abnormal transactions to the inspection authority in the first place. According to analysis, after the resumption of trading on September 2, the stock price of Tianshan Bio rose sharply, and the trading volume was conspicuously high, showing the features of continuous short-swing speculations. First, the purchases were mainly made by individual, accounting for more than 97% of the purchase amount. Second, there were many accounts participating in trading, but the average trading volume per account was small. On September 8, the average trading volume per account was CNY 41,000, while the number of accounts participating in trading was 55,200, which was 13.46 times that of 4,100 on August 19. Thirdly, the number of stock holding accounts increased significantly, while the average number of stocks per account is significantly reduced. The number of stock holding accounts increased from 13,800 on August 19 to 48,900 on September 7, the number of stocks per account decreased from 23,200 to 6,400, and the percentage of stock holding of the top 100 holders of negotiable shares (excluding the top two) dropped from 9.86 % to 6.64%. Fourthly, from the perspective of the trading habits of the top purchasing accounts, the average stock holding time was short, mostly 1-3 days, showing an obvious feature of short-term trading.

On September 8, Tianshan Bio triggered the abnormal fluctuation alert, and SZSE once again required the company to suspend trading for inspection in accordance with the relevant rules. At the same time, through monitoring, it was found that the trading of Sino Diamond and Changfang Group share similar features with that of Tianshan Bio, both meeting the definition of severe abnormal fluctuation. Therefore, SZSE required these two companies to suspend trading for inspection. SZSE hereby reminds investors to enhance awareness of risk, uphold the concept of value-oriented and long-term investment, avoid speculation on small-cap and under-performing stocks to guard against unnecessary investment losses, and participate in trading in compliance with laws and regulations so as to jointly maintain the market order and promote the sound and stable development of the market.