Singapore Exchange says "trade with caution" alerts to be more targeted

Singapore Exchange said alerts might now contain details gathered from its review of trading activities.
Singapore Exchange said alerts might now contain details gathered from its review of trading activities. ST PHOTO: LIM YAOHUI

SINGAPORE (REUTERS) - Singapore Exchange (SGX) said on Wednesday alerts advising investors to trade certain stocks with caution would become more targeted, following criticism of their widespread use.

Currently, so-called "trade with caution" alerts are automatically generated when trading activity of a share cannot be explained by any publicly-known factor.

SGX said in a statement the alerts might now contain details gathered from its review of trading activities in a bid to provide more information to investors.

The move comes after SGX's regulatory chief said last month the bourse was reviewing compliance among its listed companies with corporate governance rules, as it seeks to boost its credentials as a front-line regulator.

Tan Boon Gin, SGX's chief regulatory officer, last month also made headlines when he drew attention to the way some Chinese companies listed on the bourse were reporting sudden adverse financial changes.

Analysts have in the past criticised SGX's ability to enforce regulation following a 2013 penny stock crash that hurt trading volumes.