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Shenzhen gets tough on manipulation

Nevin Nie

The Shenzhen Stock Exchange has barred listed firms from investing in shares with funds raised on the stock or bond markets or through bank loans.

The new rules also mandate that companies must publicly disclose their securities portfolios, and gain board or shareholder approval for securities acquisitions that increase the value of their investment holdings beyond a certain level.

The exchange yesterday ordered that senior company executives and directors must disclose holdings in their own companies on the exchange's website.

Surging markets have allowed insiders and others to manipulate share prices, and regulators have been working to hinder such activities.

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