China-listed company insiders sell off shares at record rates

Senior executives at listed mainland Chinese firms and their relatives sold a total of 1.68 billion shares in May, triple the amount seen a month before, marking a pronounced uptick in the rate at which company insiders sell shares in their own companies, Reuters reported, citing data from Southwest Securities. Cornerstone investors are reducing their stakes as well as they reach the end of mandated lock-up periods, having sold off RMB109 billion worth of Shanghai and Shenzhen-listed shares in May. An index compiled by Shenwan Hongyuan Securities tracking major shareholders’ trading activities also surged in the past month, meaning major shareholders are reducing holdings at unprecedented levels.