Shanghai stock exchange conducts tests to ensure smoother trading experience

The Shanghai Stock Exchange (SSE) announced it will conduct a series of trading tests on Sunday, aimed at validating the performance of its trading platforms in handling large volumes of orders, the Securities Times reported.

The move followed a delay in transactions during the stock trading on Friday.

The test simulated a full trading day, including both trading and clearing processes. The test primarily aims to ensure the stability of the trading platform during peak order submission periods. The SSE emphasized that the testing scenarios specifically address the handling of a significant influx of orders during continuous bidding periods.

On Friday evening, the SSE acknowledged that trading on Friday morning was affected by slow transaction confirmations. The trading gradually resumed at 11:13 am after the issue was addressed. The SSE expressed its sincere apologies for the inconvenience caused to market participants.

China's recent favorable policies including a cut in reserve requirement ratio and interest rates to support economic recovery have significantly boosted investor expectations. The focus on attracting long-term investment, enhancing the quality of listed companies, and safeguarding the interests of small and medium investors is instrumental in bolstering confidence among investors, Yang Delong, chief economist at Shenzhen-based First Seafront Fund, told the Global Times on Sunday.

Due to a recent surge in securities account openings driven by market trends, the China Securities Depository and Clearing Corporation (CSDC) has decided to temporarily operate on Sunday to manage the high volume of account reviews. Typically, CSDC does not conduct business on weekends, according to the Securities Times.

After investors apply to open an account with a brokerage, the brokerage must submit the application data to CSDC for review. An account is only officially opened once CSDC approves the application.

Backed by a series of supportive measures, Chinese A-shares continued their upward momentum on Friday, following a strong performance on Thursday that saw the Shanghai Composite Index break through the 3,000-point mark.

By the close of Friday trading, the Shanghai Composite Index rose by 2.88 percent, finishing at 3,087.53 points. The Shenzhen Component Index surged by 6.71 percent, closing at 9,514.86 points, while the ChiNext Index saw a remarkable 10 percent surge, marking its largest single-day gain in history, ending at 1,885.49 points.

The total trading volume on the Shanghai and Shenzhen exchanges reached 1.446 trillion yuan ($206.2 billion) on Friday, the third consecutive trading day when turnover exceeded 1 trillion yuan.