China bans key shareholders from selling stakes for six months
July 9 , 2015
In a drastic intervention, the Chinese securities regulator has banned major shareholders from selling their stakes for the coming six months in an attempt to put a brake on the plunging stock prices that have started to spook global markets.
The China Securities Regulatory Commission warned that if shareholders with stakes more than 5% violated the rule, they would be very severely dealt with.
Foreign investors holding stakes greater than 5% in firms listed in Shanghai or Shenzhen will also fall under the ambit of the ruling.
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