CHINA: CSRC bans major shareholders from selling their stakes for next six months

Friday July 17 2015

On 8 July 2015, CSRC announced that major shareholders and executives of listed companies with stakes of more than 5% are prohibited from reducing their shareholding by selling their shares on the secondary market. Since mid-June, the Chinese stock market has lost almost a third of its value – a loss of $3.2 trillion. This recent ban is principally intended to ease pressure on the capital market while simultaneously protecting the interests of investors.

CSRC has made it clear that it would deal severely with any major shareholder, director, supervisor or senior manager who violates this rule. The CSRC will issue a further notice when this six-month period has expired.

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