China to keep share sales ban in effect until new rules promulgated

SHANGHAI - China will keep in effect its ban on share sales by listed companies' major shareholders until the government publishes new rules on such share disposals, the Shanghai Securities News reported on Wednesday.

China's stock market slumped 7 percent on Monday, partly triggered by fears that a six-month ban on share sales by listed companies' major shareholders, imposed during the height of a market rout last year, will expire on Jan. 8, unlocking an estimated 1.24 trillion yuan (S$270 billion) worth of shares.

China's securities regulator said on Tuesday that it was studying new rules to restrict share sales by listed companies'major shareholders to ensure an orderly exit.