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SHANGHAI, June 17 (Reuters) - The Shanghai Stock Exchange will adopt a warning system for high-risk bonds traded on its exchange and restrict retail investor trading in such instruments, according to a statement by the exchange on Tuesday.
The statement, posted on the exchange’s website (www.sse.com.cn), said bonds issued by companies that operated at a loss in the previous year will receive a special “ST” designation, identical to the “special treatment” tag applied to shares in loss-making companies trading on the stock exchange.
Individual investors must have at least 5 million yuan ($805,300) in financial assets to trade ST bonds, the statement said. They must also sign a document saying they understand the risk entailed in such trades.
$1 = 6.2090 Chinese Yuan Renminbi Reporting by Pete Sweeney and Lu Jianxin; Editing by Paul Tait