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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

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