The Shanghai Stock Exchange has taken self-regulatory measures to suspend account trading for investors linked to Elegant Home-Tech. On the evening of August 18, the exchange issued a notice saying that Elegant Home-Tech's share price continued to fluctuate sharply, and that some investors displayed abnormal trading behavior that disrupted the normal order of stock trading. In accordance with regulations, the exchange took self-regulatory measures including suspending account trading for the relevant investors. Elegant Home-Tech had been planning a cross-sector move into the storage testing equipment track, and from July 21 to August 18 it hit the daily limit up in 12 of 13 trading days, with a cumulative gain of 214.8 percent. That evening the company issued an announcement on abnormal share price movement, saying the stock carries huge trading risk and concept speculation risk, and that its static price-to-earnings ratio reached 423.11 times, significantly higher than the industry level of 28.99 times.
Zhangjiagang Elegant Home Tech Co LtdExchange suspends trading accounts of investors linked to the company due to abnormal trading, and company warns of huge trading and concept speculation risk.
