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HONG KONG (AP) — Trading in shares of heavily indebted Chinese property developer China Evergrande Group was suspended in Hong Kong on Thursday, according to a notice on the Hong Kong stock exchange.

China Evergrande said in a notice on Thursday night that authorities had informed the firm that its chairman, Hui Ka Yan, had been subjected to “mandatory measures in accordance with the law due to suspicion of illegal crimes” and said that trading in the firm’s shares was suspended until further notice.

The company didn’t elaborate on the crimes that Hui was suspected of.

Evergrande is the world’s most heavily indebted real estate developer and is at the center of a property market crisis that is dragging on China’s economic growth.

https://apnews.com/article/china-evergrande-suspends-trading-property-65c2df0510a111475e182350174a065d

From the looks of it, the Chinese government suspended trading of the Evergrande stock. There's not a lot of details on this, but it seems like it's the Chinese government that did it. My question is whether the U.S. government has the same power, and if there's a historical precedent where the U.S. suspended the trading of a particular stock for whatever reason.

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  • BTW, you left out that "the company [stock] had resumed trading on Aug. 28 after a 17-month hiatus." Although as detailed elsewhere that earlier "suspension" was "for not publishing its financial results." theguardian.com/business/2023/sep/28/….
    – Fizz
    Sep 30 at 17:33
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    Also their shares plunged 87% on that August day,. Some stock exchanges have [short term] automatic suspensions for such events. The thresholds may vary, IIRC.
    – Fizz
    Sep 30 at 17:39

1 Answer 1

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The federal securities laws allow the SEC to suspend trading in any stock for up to ten trading days when the SEC determines that a trading suspension is required in the public interest and for the protection of investors

https://www.sec.gov/litigation/suspensions

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  • While this is a good answer I don't think it addresses the question of doing it at any time as this appears to only happen if certain things happen.
    – Joe W
    Sep 30 at 15:37
  • That's somewhat less than 17 months.
    – Fizz
    Sep 30 at 17:35

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