Beijing Stock Exchange Prohibits Major Shareholders of Listed Companies from Selling Shares

China's Beijing Stock Exchange has issued a 'stock sale ban' targeting major shareholders of listed companies, according to major foreign media citing sources on the 27th.

Sources reported that the Beijing Stock Exchange has effectively implemented a new policy prohibiting major shareholders of listed companies under its jurisdiction from selling their shares. This is due to concerns that if major shareholders sell, it could dampen the long-awaited stock market recovery by the government.

According to Chinese regulations, major shareholders are those holding more than 5% of shares and must disclose related information before selling stocks. Sources said the Beijing Stock Exchange is blocking these sales by refusing such disclosures. They added that it is unclear how long this new policy will remain in effect.

Sources explained that these so-called 'window guidance' directives, given verbally without documentation, aim to maintain the stock market recovery. They pointed out that without such guidance, a sharp rise in stock prices could induce institutional investors to sell their shares, causing the Beijing representative index, the 50 Index, to fall again.

Currently, 232 companies are listed on the Beijing Stock Exchange, with a market capitalization of 366 billion yuan (approximately 67 trillion won).

This content was produced with the assistance of AI translation services.