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China’s stocks trading halted for the day after 7% slump
January 7, 2016, 4:44 am

An investor looks through stock information at a trading hall in a securities firm in Hangzhou, capital of east China's Zhejiang Province, Jan. 7, 2016 [Xinhua]

An investor looks through stock information at a trading hall in a securities firm in Hangzhou, capital of east China’s Zhejiang Province, Jan. 7, 2016 [Xinhua]

Trading was halted for the day on the Shanghai and Shenzhen stock markets on Thursday morning after shares tumbled over 7 per cent as the newly introduced circuit breaker mechanism was triggered.

The CSI300 index fell 7.2 per cent, to 3,284.74 points, while the Shanghai Composite Index lost 7.3 per cent, to 3,115.89 points.

China’s securities regulator issued rules on Thursday to restrict share sales by listed companies’ major shareholders, saying the move will stabilise market expectations but doesn’t signal an imminent exit of the “national team” of investors.

Major shareholders must not sell more than 1 per cent of a listed company’s share capital through stock exchanges’ centralised bidding system every three months, according to the rules published by the China Securities Regulatory Commission that will take effect Jan. 9.

In addition, major shareholders must file their plans 15 trading days in advance of sales.

 

Source: Agencies