Authorities Prevent Big Shareholders Liquidating Assets

Authorities Prevent Big Shareholders Liquidating Assets

The China Securities Regulatory Commission announced recently that shareholders holding a controlling stake in a listed company would not be permitted to sell their stock in the secondary market. The new rules are effective for six months starting from July 8, and also apply to board members, supervisors and high level managers owning a stake greater than 5% in their companies. The measures are in response to the fall in the Shanghai Composite index, which the CSRC refers to as “irrational”. One netizen said the announcement was made just after the targeted stockholders had dumped their shares.

Source: Netease

READ  China and Japan Have Different Take On Store Assault Case
Help us maintain a vibrant and dynamic discussion section that is accessible and enjoyable to the majority of our readers. Please review our Comment Policy »
  • redgirls

    wow ouch,

    Need to see how this plays out?

    • Money is Everything

      it works so well!
      i get about 5000usd back already!
      but still about 7000usd to get back!

      • Money is Everything

        from yesterday to today, everyday is limit-up.

        • Vance

          People are probably “bargain hunting” now that stocks are lower. Good time to play.

          • Foreign Devil

            I’d wait 6 months for the real bottom.

          • Vance

            You believe the market Will be bear for awhile? I have not kept up with the Shanghai market. My retirement plans here are doing well, but those are mixed investments, not get rich quick schemes. If people would just wait, they find that over time there has always ben a gain. Leave it in for 10 years. The market has always been higher than 10 years ago. You would realize a profit.

          • Foreign Devil

            Yeah we are only a couple weeks off the peak of the bubble. . I’ve learned as you know you have to always look longer term, unless you have a computer algorithm that can do micro second transactions on the market. Everyone who liquidated during the 2008 crash ended up losing big bucks. . it was back above 2008 levels just a year and a half later.

        • Foreign Devil

          your pulling your money out of the market at the same time as everyone else at a heavy loss. . . Better to keep it in.

          • Money is Everything

            do not write to me again! no ear or eye?

  • donscarletti

    Not irrational at all. Those shares were over valued a month ago and are over valued today, just slightly less so.

    • Jahar

      I saw somewhere that like 80% of stock is owned by individuals here. I can’t remember the stats in the west, but it was a much, much lower percentage. Individuals tend to overspend, and spook easily.

  • Foreign Devil

    The stock market in Shanghai is basically being closed down and bailed out. Just like the US government bailed out their banks.. Every capitalist banker clamors for free markets during rallies and then screams for government bailouts and socialist interventions as soon as things turn sour.

Personals @ chinaSMACK - Meet people, make friends, find lovers? Don't be so serious!»