China regulator may restrict stock sales by major shareholders

China's securities regulator said on Tuesday it is studying rules to regulate share sales by major shareholders and senior executives in listed companies. 

PHOTO: REUTERS

JAN 5, 201610:05 AM

[SHANGHAI] China's securities regulator said on Tuesday it is studying rules to regulate share sales by major shareholders and senior executives in listed companies.

The China Securities Regulatory Commission said that it would consider restricting the proportion of shares that major shareholders could sell during a given period of time.

China's stock market plunged 7 per cent on Monday, triggering a market circuit breaker.

The markets were down partly on concerns that a six-month ban on share sales by major shareholders would spark a sell-off when it expires on Jan 8.

REUTERS