What is a Trading Halt?
The suspension of trading of stocks, also known as the suspension of listing, is a measure taken by the stock exchange to temporarily suspend the listing of stocks and is one of the specific measures to prevent market risks. Article 55 of the Securities Law stipulates that a listed company shall suspend the listing of its stocks if one of the following situations occurs: 1. The company s total share capital and distribution of equity no longer meet the requirements for listing; 2. Failure to disclose its financial status or make false records of financial and accounting reports may mislead investors; 3. The company has committed major illegal acts; 4. The company has suffered losses for the last 3 years; 5. Other circumstances required by the listing rules of the stock exchange . [1]