China has announced a fresh measure to try to curb the crashing prices on Shanghai markets with the announcement of a blanket ban on major shareholder selling.
The China Securities Regulatory Commission’s announcement number 18 for 2015 has, because the stockmarket has become “irrational”, banned for six months any selling from “controlling shareholders” and anyone else with more than 5% of the stock outstanding in a company.
Additionally “directors, supervisors and senior management personnel” are banned from reducing their holdings.
The CSRC said they will treat “seriously” any breach of this edict.
Of course this is just the latest in the short but fierce battle to halt the massive slide in the Chinese stock market which saw the bellwether Shanghai Composite index at 3,506, down 18% for the month and up just 8% for the year.
The tweet from Patrick Chovanec is response to this news sums up the situation which has unfolded perfectly.