Beijing limits non-tradeable share flow
21 April 2008
The China Securities Regulation Commission (CSRC) has announced that listed companies will only be able to conduct block trades if the stake exceeds 1% of a public firm's total volume, the South China Morning Post reported. Block trades are privately negotiated wholesale share transactions. The CSRC hopes the move will strengthen the bearish stock market by easing selling pressures. Approximately 60% of shares in China are non-tradeable, and the new rule is designed to prevent a flood of state-held shares onto exchanges after lock-up periods expire.
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