Main­land China in­vestors fined for vi­o­lat­ing ‘no sell’ or­der

The China Post - - BUSINESS INDEX & -

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.

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