China’s Securities Regulator Restricts Big Share Sales as Stocks Nose Dive

China’s stock regulator said Thursday it will curb major shareholders from selling more than 1% of total shares outstanding within three months, after markets closed early when the circuit-breaker mechanism was triggered for a second day this week.

The China Securities Regulatory Commission has ruled that large shareholders — those holding 5% or more of shares in listed companies — won’t be allowed to sell more than 1% of total shares outstanding within the next three months, according to a statement on the regulator’s website.

The agency also ruled that large shareholders must disclose their share reduction plans to the exchanges 15 trading sessions in advance.

The new measures came before the six-month share reduction ban on large shareholders is set to expire Friday. The new rules are aimed at “preventing concentrated share reduction” and “stabilizing market expectations,” the statement said.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

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