China expands after-hours stock trading under new exchange rules

(ECNS) - China's Shanghai, Shenzhen and Beijing stock exchanges put into effect on Monday a set of revised trading rules designed to expand after-hours trading, refine pricing mechanisms and improve market liquidity.

The changes widen the scope of fixed-price after-hours trading. The Shanghai Stock Exchange extended the mechanism from its STAR Market to all A-shares and exchange-traded funds, while the Shenzhen exchange broadened it from ChiNext-listed stocks to all the stocks and ETFs it lists.

The Beijing Stock Exchange, for its part, introduced after-hours fixed-price trading.

The Shanghai and Shenzhen exchanges also doubled the daily price movement limit for main-board risk-warning stocks to 10% from 5%, bringing them into line with ordinary main-board shares.

Other revisions include changes to fund closing auctions and block-trading rules, along with a new market-maker mechanism for ChiNext stocks.

Market participants said the reforms should sharpen trading efficiency and price discovery while giving investors more flexibility in how they trade.

(By Zhang Jiahao)