China loosens stock restrictions for major shareholders

China’s securities regulator has relaxed restrictions on investments in listed companies by major shareholders in a bid to encourage increased holdings in the stock market, MarketWatch reported, citing an official quoted in the China Securities Journal. Shareholders who own more than 30% of listed firms will now be able to increase their stakes by 2% per year without securing approval. The CSRC also reduced the mandatory lock-up period for newly-purchased shares to six months, from a previous 12 months. Additionally, shareholders no longer need approval to increase their share in a company to 50%, as long as the listing status of the entity is not affected. The new rules were issued on February 14 and will come into effect on March 15.