The Shanghai Stock Exchange is taking measures to control risk

The Shanghai Stock Exchange (Shanghai Stock Exchange, or SSE) on Monday ordered all companies share ST (Special Treatment) issue a biweekly report to inform investors about the risk, according to a statement posted on its website .

Titles ST, which are shares of companies failed to make a profit for two consecutive years or have been fingered for false accounting, have attracted speculators who saw in them a quick windfall gains.

In an effort to stabilize the market, the SSE has established strict regulations on information released by ST companies.

The statement said the companies must provide information on transfers of shares, non-public offerings, the debt restructuring, business reorganization and capital flows. The Company and all members of its board of directors are responsible for the authenticity, accuracy and integrity of their reports. The new states do not replace the official reports.

The statement said the companies did not achieve the reforms of assets in equities should also provide information on their situation in the reform process.

An official with the SSE said small investors are vulnerable to irrational market fluctuations caused by rumors and hype. The Exchange must provide better information on potential risks.

ST stocks have performed very well for a week but last Friday they suffered a sharp setback with 24 shares dropping by the daily limit of 10%.