China to Punish Some Major Holders for Share Selling ViolationsBloomberg News
China’s securities regulator will penalize major shareholders at publicly traded companies including Southwest Securities Co. and Guoxing Rongda Real Estate Co. for violating rules that limit stake sales.
Major shareholders at 20 companies are the offenders, according to a statement on the China Securities Regulatory Commission’s microblog. The CSRC’s investigation focuses on whether shareholders sold their stakes beyond what rules allow, if they sold them during a moratorium period and whether they made timely disclosures, Zhang Xiaojun, a spokesman for the regulator in Beijing, told reporters on Friday. The CSRC didn’t say what the penalties would be. Major shareholders are defined as those who own at least a five percent stake.