Mainland China investors fined for violating ‘no sell’ order
Mainland China’s securities regulator has announced the first penalties for violators of a ban imposed in July on stock sales by major shareholders as part of frantic efforts to stem a slide in prices.
Four investors, five institutions and eight executives were fined a total of 28.4 million yuan (US$4.5 million), the China Securities Regulatory Commission said. It gave no details of their identities.
The announcement, dated Tuesday, said they were the “first batch” of penalties under the July 8 rule, suggesting more might be announced.
The ban on sales by shareholders who own more than 5 percent of a company was one of a flurry of measures imposed after China’s main market index fell 30 percent beginning in early June.
The violators’ sales “seriously undermined the market order and damaged investor confidence,” the securities commission said in a statement.
Other emergency measures included multibillion- U. S.- dollar stock purchases by a stateowned brokerages and a finance company.