China stops shareholders from cutting stakes in next 6 months

BEIJING: China's securities regulator ordered shareholders with stakes of more than 5 percent from selling shares in the next six months in a bid to ease the pressure on its stock markets.

The China Securities Regulatory Commission (CSRC) said on its website late on Wednesday that it would deal severely with any shareholders who violate the rule.

The CSI300 index of the largest listed companies on the Shanghai and Shenzhen exchanges closed down 6.8 percent on Wednesday, while the Shanghai Composite Index dropped 5.9 percent.