China plans to restrict stock sales by large shareholders

BEIJING - China plans to restrict stock sales by large shareholders once a ban imposed in July to stop a slide in prices is lifted this week.

See Full Article

Stockholders who own more than 5 per cent of a company will be required to sell shares through private transactions to "avoid shocks to the market," the China Securities Regulatory Commission said on its microblog.

Regulators are winding down emergency measures imposed after China's main market index plunged more than 30 per cent in June.

The six-month ban imposed on sales by large shareholders expires Thursday. Financial analysts have warned that would lead to a new round of selling and more volatility.

Markets are jittery after the benchmark fell by nearly 7 per cent on Monday and trading was halted for the day.

Restrictions on large sales will allow regulators "to realize the orderly withdrawal of temporary measures for the extraordinary volatility of the market," said the CSRC statement dated Tuesday.

The market benchmark more than doubled between late 2014 and its June 12 peak as millions of novice investors bought shares.

The collapse in prices triggered a panicked response by Beijing, which banned large sales, cut interest rates, cancelled initial public stock offerings and ordered state companies to buy shares.

Chinese leaders had encouraged the public to buy in hopes of raising money to overhaul state industry. The market rout alienated small investors who were left holding shares worth less than they paid.

Authorities say shares bought by state companies will be transferred to China's sovereign wealth fund to avoid depressing prices by selling them in the open market. The ban on new IPOs was lifted in November.



Advertisements

Latest Economic News

  • Union representing 2,000 Quebec workers unsure about CSeries Airbus deal

    Economic CTV News
    MONTREAL -- Quebec workers with Bombardier's CSeries plane program have mixed feelings about the deal with Airbus giving the European aerospace giant a controlling stake in the aircraft, a union representative said Tuesday. David Chartrand, Quebec co-ordinator for the International Association of Machinists and Aerospace Workers, said the deal means access to a massive market and possibly more jobs. Source
  • Sears Canada's registered retirement plan appoints new administrator

    Economic CTV News
    VANCOUVER -- Morneau Shepell is taking over administration of Sears Canada Inc.'s registered retirement plan. The Financial Services Commission of Ontario says in a statement that the Ontario Superintendent of Financial Services appointed the human resources consulting and technology company after a competitive tendering process. Source
  • Liberals to narrow scope of passive-income measure for private corporations

    Economic CBC News
    The federal government is moving to pare down its controversial tax proposal on passive income so that it will only affect three per cent of private corporations. Finance Minister Bill Morneau will be in New Brunswick on Wednesday to unveil changes to his passive investment proposal so that it only targets unfair tax advantages used by the wealthy, a senior government official told The Canadian Press. Source
  • Freeland calls U.S. NAFTA demands 'troubling' and 'unconventional'

    Economic CBC News
    Foreign Affairs Minister Chrystia Freeland accused the United States of deliberately trying to undermine the North American Free Trade Agreement, calling its list of unconventional proposals "troubling." Her remarks came during a tense joint news conference as the fourth round of NAFTA talks wrapped up in Arlington, Va. Source
  • Veteran investor booted from Sprott board after racist comments

    Economic CTV News
    TORONTO -- Veteran investor Marc Faber was asked to resign from the board of directors at Sprott Inc. after comments he made in his investment newsletter that America was better off because it was settled by white people instead of black people. Source
  • Veteran investor Marc Faber booted from 3rd company after racist comments

    Economic CTV News
    TORONTO -- Veteran investor Marc Faber has resigned his board seats at three companies based in Canada on Tuesday following comments he made in his investment newsletter that America was better off because it was settled by white people instead of black people. Source
  • Missouri appeals court tosses $72M US award in talcum powder case

    Economic CBC News
    A Missouri appeals court on Tuesday that vacated a $72 million US award to an Alabama woman who claimed her use of Johnson & Johnson products that contained talcum contributed to her ovarian cancer has thrown the fate of awards in similar cases into doubt. Source
  • Latest NAFTA round ends in a stalemate with plans to extend talks into 2018

    Economic CTV News
    WASHINGTON -- U.S. Trade Representative Robert Lighthizer says NAFTA talks are being extended into 2018 -- a tacit admission that negotiators aren't going to meet their original deadline for a deal by year-end. The proposals tabled at the latest round have revealed huge chasms in negotiating positions, on everything from dairy and autos to even the basic architecture of an agreement -- and the tone of Tuesday's news conference made clear the talks have turned downright frosty. Source
  • Veteran investor Marc Faber booted from Sprott board after racist comments

    Economic CBC News
    Veteran investor Marc Faber was asked to resign from the board of directors at Sprott Inc. after comments he made in his investment newsletter that America was better off because it was settled by white people instead of black people. Source
  • White House says Fed search down to 5 finalists

    Economic CTV News
    WASHINGTON -- A White House official says U.S. President Donald Trump has narrowed his search for the next Federal Reserve chairman to five final candidates. A decision is expected before the president begins a trip to Asia on Nov. Source