Beijing Stock Exchange Punishes 3 Investors for Private New Share Purchases

On September 11, China's Beijing Stock Exchange imposed a three-month trading restriction on the securities accounts of three investors for privately buying newly issued shares and agreeing to share IPO gains, according to Jiemian News. The exchange said the investors reached private arrangements during the subscription stage, paid fixed fees or agreed on profit-sharing terms to lock in returns in advance and shift investment risk. It said the conduct bypassed public trading channels, disrupted the order of new share issuance, and harmed market discipline. The exchange warned that off-exchange deals conducted under names such as "buying out funds" or "buying new shares" and involving private transfers or profit-sharing arrangements may violate rules, and urged investors to use compliant channels and make independent decisions.