KURE - Beijing exchange bars stock sales by major shareholders of listed firms - report
2023-11-27 05:56:17 ET
The Beijing Stock Exchange has enforced a policy that halts major shareholders of companies listed on its platform from selling their shares in an attempt to protect the bourse's recent rally, Reuters reported.
The exchange was launched in 2021 to help innovative small companies attract funding. However, it has been struggling with weak investor interest.
Major shareholders that have a 5% stake or more in the listed companies are required to make a public filing with the exchange before selling their shares. The Beijing Exchange has been rejecting such filings, the report said citing an unnamed source.
The move is likely aimed at avoiding panic selling, which would put out the rally that the exchange's benchmark 50 Index has seen this month ( +46% ) as a result of Beijing's market-support measures.
The Beijing Stock Exchange 50 Index rose ~10% on Monday, adding to last week's impressive 21% surge .
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Beijing exchange bars stock sales by major shareholders of listed firms - report