China stops large shareholders from cutting stakes in next 6 mths

[BEIJING] China's securities regulator ordered shareholders with stakes of more than 5 per cent from selling shares in the next six months in a bid to ease the pressure on its stock markets.

The China Securities Regulatory Commission said on its website late on Wednesday that it would deal severely with any shareholders who violate the rule.

The CSI300 index of the largest listed companies on the Shanghai and Shenzhen exchanges closed down 6.8 per cent on Wednesday, while the Shanghai Composite Index dropped 5.9 per cent.

REUTERS