The Analysis Of Case Of HangXiao Steel With The System Of Trading Halts

As our economy developing, our standard of living was elevated. At the same time, the system of economy has changed deeply and our stock market is developing. So, the number of invest of stock was increased. Investing of stock is a financing tool whose risk investor took on with pleasure. Stock became the most popular topic. Stock is a quintessence of the securities business. It has some characteristics. The intendant of stock market tries its best to let stock market run in the right track. So, there will be many rules. The System of Trading Halts is the most important one to common investor's legality benefit.The case of HangXiao Steel was one of the most important cases in 2007. The System of Trading Halts is not perfect. The case expressed the effects of many aspects. The System of Trading Halts is indispensable for protecting the benefit of investor, the equitableness of throwing daylight on market news and the intendance of company whose stock was currency on the market. Generally, there were three reasons for stock stopping currency. Firstly, when the company whose stock was currency on the market have important news to publicize, as to publicize the account book, medium-term result, to sit a conference for dormant partner, to add investment, to publicize the scheme of distribution, important purchasing, investing, the change of stock and so on. Secondly, when the intendant of stock market let companies proclaim some news which was very important to itself. Thirdly, when company is a suspect of getting out of line. The time of stopping was decided by the material circs. The stock exchange hopes, by the stopping currency, investors can know some things about the reason of the System of Trading Halts, to let investors prepare for exchanging or not.The System of Trading Halts' motive is right. It is used for protecting the Profit of the extended investors and justice and equity of the bulletin Of market information. But in practice, due to stock market information asymmetry and information disclosure are not rigorous, leading to the System of Trading Halts as some investors profit of internal information tool. Thus, there is great distance between the objective reality and the expectations of legislation, which is often seen in the securities market " Trading Halts makes success, also leads to failure" phenomenon. I hope I can do something based on the analysis of the case HangxiaoSteel to explain all aspects of the stock suspension system to better improve our stock market-related system for the healthy development of China's stock market.