Lockup period for post-IPO sales shortened

China's regulators have shortened the lock up period on post-IPO share sales, a move that could slow the rise in share prices after a company lists, the Wall Street Journal reported. The Shenzhen and Shanghai bourses, in separate announcements on Thursday and Friday respectively, said that investors owning shares in a company prior to its listing would be able to sell their shares one year after an IPO, compared to a previous lockup period of three years. Shortening the lockup period could reduce demand from first-day investors, thus diluting share prices, analysts told the paper. The Shanghai Composite Index dropped 3.3% on Friday to end at 2,202.45. The index is down 58% this year and 64% from its high recorded last October.