Companies listed in both Shanghai and Hong Kong will have to suspend trading simultaneously to announce price-sensitive information, clarify market rumors and disclose corporate news, according to new proposals from the Shanghai Stock Exchange. The proposal is one of a number put forward by a working group comprised of officials and regulators from both exchanges, the South China Morning Post reported. Under current rules, Shanghai suspends trading in response to market reports or rumors while the Hong Kong exchange leaves it to the firms in question to decide. This created problems last year when privatization rumors led to the suspension of Shanghai-listed shares in China Petroleum & Chemical Corp and two of its subsidiaries, while Hong Kong-listed shares surged until the companies requested a suspension one hour later.
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