Two firms halted on ChiNext after shares surge

SHANGHAI Thu Oct 29, 2009 9:55pm EDT

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SHANGHAI Oct 30 (Reuters) - Shares in two of the 28 companies that debuted on Friday on the launch day of trade for the country's Nasdaq-style ChiNext market were suspended during the first 20 minutes of trade after they rose 20 percent from their opening price, triggering exchange circuit-breakers.

Chinese biological products maker Anhui Anke Biotechnology (Group) Co 300009.SZ and sports equipment maker Beijing Toread Outdoor Products 300005.SZ were both suspended from trade, the Shenzhen Stock Exchange said, after more than doubling from their IPO price.

To clamp down on excessive speculation in new shares, the Shenzhen Stock Exchange, home of the ChiNext market, has adopted regulations stipulating that trading in newly listed shares will be suspended for 30 minutes if their price rises or falls 20 percent from their opening price, and for another 30 minutes if it moves 50 percent.

A move of 80 percent from the opening price will result in a suspension of trade until the final three minutes of the session. [ID:nSHA33723] ($1=6.83 Yuan) (Reporting by Lu Jianxin and Edmund Klamann; Editing by Jacqueline Wong)

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