This Obscure China Stock Suddenly Trades More Than JPMorgan (1)

 

2017-08-08 09:10:25.989 GMT

 

By Bloomberg News

 

(Bloomberg) -- Fangda Carbon New Material Co. isn’t typically a name that jumps to mind when one thinks of the world’s most-actively traded stocks.

 

The Shanghai Stock Exchange said it would take disciplinary action if the unusual trading in Fangda Carbon persists. Steps the exchange might take include restricting certain investors’ accounts or labeling them as unqualified investors, said the people, who asked not to be named because the information isn’t public. Brokerages were ordered by the bourse to closely monitor transactions in the frenziesFangda Carbon shares declined 3.8 percent Tuesday, while the Shanghai Composite edged up 0.1 percent.

 

It’s possible that the company has become a target of speculative traders because its products can be used to help charge electric car batteries, a technology that’s gotten a boost from Chinese government subsidies, according to Yin Ming. He said such trading frenzies are common in China, where individual investors drive more than 80 percent of volume on local stock exchanges.