Major Shareholders' Massive Selling Unlikely: Regulator | |||||||||||
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//english.dbw.cn 2016-01-06 15:11:59 |
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China's securities regulator says it doesn't anticipate a major sell-off by large-scale shareholders of mainland listed companies this coming Friday. The China Securities Regulatory Commission has been blocking shareholders who hold more than 5-percent of a company's shares from trading them. It was a move instituted to try to limit the massive sell-offs on the markets which took place this summer. Those restrictions are due to end on Friday. In moving to calm concerns, the CSRC is promising new steps to ensure major shareholders can't shock the market through a massive one-off sell-off of their shares. Concerns ahead of Friday helped prompt a massive sell-off of the mainland markets on Monday, with afternoon trading stopped early after the 7 percent slump triggered the new circuit breaker mechanism. The CSRC says the new circuit-breaker mechanism is going to benefit the markets over the longer-term, though it does admit it may be considering adjustments to how the system works. Unlike the trading-curb system in-place on the markets in New York, which slows down the flow of trades during high-volume sell-offs, the Chinese circuit-breaker shuts down trading completely.
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Author: Source:CRI Editor:Yang Fan |