New selling rules for shares in effect Saturday

The China Securities Regulatory Commission on Thursday restricted share sales by major shareholders of listed companies to stabilize the market after it suffered a dramatic fall that triggered a trading halt for the remainder of the day.

Major shareholders can sell no more than 1 percent of their companies’ total shares through public trading within the coming three months, the regulator said in a statement issued immediately after the market plunge.

Major shareholders are also required to disclose their selling plans 15 days prior to the sales, according to the new rules issued by the regulator on Thursday.

The regulator said the introduction of the new selling rules does not mean that State-owned funds, the so-called national team, will withdraw from the market.

“It will not change its role of stabilizing the market,” the CSRC said.

The new rules will be effective on Saturday. The regulator imposed a six-month selling ban on major shareholders in June to stem the market rout in the summer. It is set to expire on Friday.