SHANGHAI: China’s leading over-the-counter (OTC) equity exchange is cracking down on illegal trading, with concerns growing that the market, which is aimed at small high-growth firms and private equity investors, is overheating.

The operator of Beijing’s “New Third Board” said late on Tuesday it was investigating a series of “ultra-high” price quotations during the week of March 23-27. The price of one share of Anhui Hauheng Biotechnology Co Ltd, for example, at one point cost 99,999.99 yuan ($16,145) before falling back to 1,058 yuan per share.

Such high quotes can be an indication that a stock is being manipulated, with very large prices being used to entice people into the market.

Anhui Hauheng could not be immediately reached for comment.

The National Equities Exchange and Quotations (NEEQ), which operates the exchange, said it is investigating some trading accounts, saying they had “seriously disrupted market order”.

Published in Dawn, April 2nd, 2015

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