New measures by China’s securities regulator that ban major stockholders from selling stakes in listed companies are a sign of desperation and create fear among investors, said Mark Mobius, executive chairman of the Templeton Emerging Markets Group.
Investors with holdings exceeding 5 percent as well as corporate executives and directors are prohibited from selling stakes for six months, the China Securities Regulatory Commission said in a statement Wednesday. Regulators have unveiled measures almost nightly over the past 10 days seeking to stabilize the country’s stock market, steps that have so far failed to revive investor confidence.
