On September 22, the Beijing Stock Exchange and the Shenzhen Stock Exchange carried out simultaneous intraday risk management actions, each implementing two temporary trading halts for Zhengzhou New Century Digital Technology Co., Ltd. and Guangdong Zhongsu New Materials Co., Ltd., respectively. In tandem, they issued risk alert notices urging investors to trade cautiously and invest rationally.
The intraday trading halt mechanism, serving as a risk control tool paired with the registration-based IPO reform, acts as both a market "cooling device" and a "risk control valve" during the initial trading phase of new listings when no price fluctuation limits are in effect. It is critical to note that this brief suspension window does not interfere with normal market pricing, nor does it restrict compliant trading; rather, it reserves sufficient time for all investors to digest information, review valuations, and make rational decisions.
During the suspension period, investors can still place and cancel trading orders normally. After trading resumes, a fair price is formed through call auction, truly achieving a dual balance between relaxed pricing and risk prevention while accommodating both market vitality and trading order. According to incomplete statistics, as of now, the Shanghai, Shenzhen, and Beijing stock exchanges have initiated a cumulative total of 69 intraday trading halts across 51 new listings this year.
However, the significance of intraday halts extends far beyond serving as a mere trading risk control measure. It also functions as a market-wide risk warning, prompting all participating parties to fulfill their respective duties and responsibilities.
From a regulatory perspective, authorities must continuously employ and refine the halt mechanism, closely monitoring abnormal fluctuations, malicious short-term speculation, and coordinated price manipulation behaviors during the early listing period. They should persistently enhance routine oversight measures. For instance, recently, when the stock price of Shengu Group Co., Ltd. experienced significant volatility following its listing, the Shanghai Stock Exchange initiated an intraday trading halt while simultaneously issuing a notice clarifying that certain investors had engaged in abnormal trading activities disrupting normal trading order. Disciplinary actions, including account trading suspensions, have been imposed on the relevant investors in accordance with regulations.
For listed companies, significant share price fluctuations after a new listing result from market capital competition and also test their market value management and brand image. Companies should promptly and properly disclose operating information, industry developments, and major matters, proactively engage in investor communications, and genuinely and comprehensively convey their fundamental value to avoid exacerbating market speculation and price volatility through information asymmetry.
For intermediary institutions, they should earnestly fulfill their investor suitability management responsibilities, proactively conduct educational outreach on trading rules and risk mechanisms under the registration-based IPO system, and focus on explaining to ordinary investors the trading characteristics of new shares marked with N and C identifiers—where N indicates the first trading day and C indicates the period from the second to the fifth trading day—which have no price limits and high volatility. They should also explain the operational logic of the intraday trading halt mechanism. Additionally, institutions must strengthen front-end trading guidance, provide risk warnings to investors who frequently follow speculative trends or engage in high-frequency short-term trading, and guide clients toward rational participation in new share trading.
Retail investors, as essential participants in market transactions, represent the critical focal point of risk prevention. In response to the market warnings triggered by new listing halts, investors must abandon the habitual mindset that "new listings always rise," proactively familiarize themselves with new share trading rules, and clearly recognize the potential risks during the no-price-limit trading phase. When making trading decisions, they should conduct rational analysis based on company fundamentals, industry positioning, and valuation levels—neither blindly chasing highs nor blindly catching falling knives. They should cultivate a long-term value investing philosophy and enhance their risk identification and resilience capabilities.
The high-quality development of the capital market cannot be achieved without the deep advancement of market-oriented reforms, nor without coordinated governance among all parties. In this context, the A-share new listing market should be propelled toward forming a healthy ecosystem characterized by reasonable pricing, standardized trading, and rational investing.