Beijing Stock Exchange Implements New Policy To Prevent Major Shareholders From Selling

The Beijing Stock Exchange has reportedly initiated a new policy that prevents major shareholders from selling their stakes in companies listed on its exchange. The move is aimed at protecting a long-desired rally.

According to a Reuters report, the Beijing exchange has been rejecting filings from major shareholders, defined as those owning a 5% or more stake, who are required to make a public filing before selling shares.

The policy implementation comes after the benchmark 50 Index of the exchange saw a surge of 46% this month, supported by recent measures by authorities. These measures included lowering the required amount of funds an investor must have in their stock account to invest, improving trading mechanisms, and encouraging mutual funds to participate in the market.

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The Beijing Stock Exchange and the China Securities Regulatory Commission have yet to comment on this development. The duration of this new policy remains unclear.

The exchange, founded two years ago to aid funding for innovative small companies, or “little giants”, houses 232 companies with a combined market capitalization of 366 billion yuan ($50 billion).

The Beijing Stock Exchange stated in a separate statement on Monday that it was closely monitoring trading to maintain normal market order.

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