China supports major shareholders to buy more shares

BEIJING - The securities regulator announced Wednesday that it encourages major shareholders and the management of listed companies to buy more shares to stabilize prices.

Major shareholders, directors, supervisors and senior managers are encouraged to maintain steady stock prices by buying more shares when prices fall sharply, the China Securities Regulatory Commission (CSRC) said in a statement.

The regulator also relaxed control over stock trading of listed companies to "safeguard investor interests".

Directors, supervisors and senior managers will not be restricted by a window period if they are to increase holdings in their own listed companies, should the shares drop by more than 30 percent within 10 consecutive trading days, the statement said.

Meanwhile, a major shareholder holding over 30 percent of stake in a listed company may immediately increase its holding by another 2 percent, needless to wait for 12 months as required before.

Chinese stocks continued to tumble on Wednesday as investor confidence shattered, leading to share-dumping.

The benchmark Shanghai Composite Index sank 5.9 percent to finish at 3,507.19 points. The Shenzhen Component Index slumped 2.94 percent to close at 11,040.89 points.