China stock regulator announces new rules on share sales

FXStreet (Bali) - China China Securities Regulatory Commission (CSRC) announces new rules governing share sales, effective on January 9, intended to ease panic sell-offs like the one seen today, in which the China stock market was closed for the day following the trigger of 'circuit breaks' on falls beyond 7%.

Headlines

Major shareholders of listed companies restricted to selling maximum 1% of their holdings in single entity via competitive bidding process every three months

Major shareholders should file share sale plan 15 days in advance of sale

Will help stabilize market expectations

New rules do not mean China Securites Finance Corp.(stated-controlled interventionist body) will exit the market