Source: Investment Education Center of Shenzhen Stock Exchange
According to the trading rules of the Shenzhen Stock Exchange, stock auction transactions are matched according to the principle of "price priority, time priority": price priority means that when the trading system is matched, higher price buy orders have priority over lower price buy orders. , At the same time, the lower price of the sale declaration has priority over the higher price of the sale declaration transaction; time priority refers to the transaction declaration for the same trading direction and price, and the first declaration has priority over the later declaration. Buyers and sellers play a full game to form stock prices, which reflects the pricing discovery function of the market, and is also an important reference for other investors to make trading decisions.
In actual transactions, if some investors are optimistic about the value of a stock, they will be willing to increase their investment, raise costs, and declare at a price slightly higher than the real-time transaction price to ensure the transaction. Generally speaking, such behavior is a compliant transaction. However, if large, multiple, or long-term capital advantages are used to raise the stock price, it may constitute market manipulation prohibited by the Securities Law. This is the case in this case:
The total amount of funds put into the market by Xu XX is as high as several hundred million yuan, and it is a major account that the exchange focuses on. During the end of the market on August 13, October 16 and 26, 2015, Xu XX controlled and used his own account and used his capital advantage to trade multiple stocks, which caused the relevant stocks to go out of the strong upward trend of the end market:
By interpreting the "Administrative Punishment Decision" issued by the China Securities Regulatory Commission, we found that Xu XX's methods of raising stock prices include:
1. Proportion of high filings and transactions
The ratio of purchases to the market purchases during the period exceeded 50%, with the lowest being 60.30%, the highest being 74.87%, and the average being 67.96%.
The ratio of the buying volume to the market buying volume during the period all exceeded 50%, the lowest was 62.73%, the highest was 82.48%, and the average was 73.89%.
2. High price commission
The average increase in the price of each order from the previous transaction price is 0.24%, 0.83%, and 0.51%.
Except for only one filing for individual stocks, which is the second tier, the rest of the orders are all the first tier. The act of pushing up stock prices released a large amount of demand for stock purchases in a short period of time, destroying the full game process of buyers and sellers, forming distorted market pricing, and damaging the basic functions of the securities market. If investors have the trading psychology of chasing ups and downs, or paying special attention to abnormal stocks, they are likely to make wrong investment decisions based on distorted prices. Some illegal entities take advantage of the above psychology to actively create stock price fluctuations and induce counterparties to participate in transactions. They themselves sell in large quantities on the same day or the next day to obtain huge profits.
Article 77 of the Securities Law clearly prohibits market manipulation, and four situations are proposed. Investors will be severely punished if they touch this behavior. In this case, Xu XX violated the provisions of Item (1) and Item (4) of the first paragraph, respectively, "single or through collusion, pooling capital advantage, shareholding advantage, or using information advantage to combine or continuous trading, manipulate "Securities trading price or securities trading volume" and "manipulating the securities market by other means", using market manipulation methods to induce investors to participate in transactions, a single stock has a profit of more than 4 million yuan in one or two trading days. The illegal income of 37.02 million yuan was confiscated and a fine of 74.03 million yuan was imposed. Investors, especially small and medium-sized investors, must independently think and make decisions during the investment process, and must not follow the trend of investment without analysis. Don't be tempted by the rapid rise in stock prices and fall into the trap of market manipulators.
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