Beijing Stock Exchange Implements New Policy To Prevent Major Shareholders From Selling

The Beijing Stock Exchange has reportedly initiated a new policy that prevents major shareholders from selling their stakes in companies listed on its exchange. The move is aimed at protecting a long-desired rally.

According to a Reuters report, the Beijing exchange has been rejecting filings from major shareholders, defined as those owning a 5% or more stake, who are required to make a public filing before selling shares.

The policy implementation comes after the benchmark 50 Index of the exchange saw a surge of 46% this month, supported by recent measures by authorities. These measures included lowering the required amount of funds an investor must have in their stock account to invest, improving trading mechanisms, and encouraging mutual funds to participate in the market.

See Also: Chinese Education Stocks Are Plunging Again: What You Need To Know

The Beijing Stock Exchange and the China Securities Regulatory Commission have yet to comment on this development. The duration of this new policy remains unclear.

The exchange, founded two years ago to aid funding for innovative small companies, or “little giants”, houses 232 companies with a combined market capitalization of 366 billion yuan ($50 billion).

The Beijing Stock Exchange stated in a separate statement on Monday that it was closely monitoring trading to maintain normal market order.

Read Next: China’s Lithium Prices Plunge To 26-Month Low: How Have Mining Stocks Fared?

Image via Shutterstock


Engineered by Benzinga Neuro, Edited by Pooja Rajkumari


The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.


Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: AsiaNewsMarketsGeneralBeijing Stock ExchangeChinamajor shareholder
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!