Published On: Thu, May 22nd, 2014

SZSE Implement Pricing Block Trading After Trading Hour

Chen Dongzheng Chairman SZSE

Chen Dongzheng Chairman SZSE

Shenzhen Stock Exchange (SZSE) officially implemented pricing block trading after trading hour as of 19 May, 2014, on which day, two securities were involved in block trading, with a trading volume of CNY 2.8885 million.

According the relevant principal from SZSE, in recent year, in order to adapt to the changes of investors’ needs and the market development, SZSE have researched and improved the block trading system in a continuous effort. After proven by substantial research, Trading Rules has been revised and issued in last July. This new version Trading Rules lowers the threshold for block trading, and increases optimized measures such as pricing the block trading after trading hour. Lowering the threshold for block trading has been implemented since last year, while pricing block trading after trading hour has recently been officially implemented after relevant technological preparation had been completed.

According to the source, the recently implemented pricing block trading after trading hour includes two types of pricing categories, i.e., closing price and weighted average price of the day, both of which, offer the market with more transparent pricing mechanism for the block trading. The measure not only caters market participants’ market need of diversified prices of block trading, but also is conducive to institutional investors to pursuing the trading strategy of minimizing deviation of tracking the index, thus improves the market trading efficiency.

SZSE will further carry out the united deploy of innovative trading mechanism raised in Several Opinion of the State Council on Further Facilitating Sound Development of Capital Market (referred as New National Nine). SZSE will positively accommodate to the market trend of diversified investors and trading needs, enrich the trading method of block trading, and continuously carry out the innovation on trading mechanism, so as to lay solid foundation for the development of multilayer capital market.

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