China has barred foreigners from buying more shares in Shenzhen-listed laser specialist Han’s Laser Technology Industry Group Co. The ban was implemented due to global investors nearly reaching the 30% cap on international ownership of a single stock, said the Wall Street Journal.
Offshore investors’ holdings in Han’s Laser Technology increased 13% in one year through Stock Connect, a trading platform used between the Hong Kong, Shanghai and Shenzhen stock exchanges. Foreign holdings through Stock Connect and the Qualified Foreign Institutional Investor program reached 28.2%, the company stated this week.
Shenzhen stock exchange has instructed its Hong Kong counterpart to halt purchase orders until Han’s Laser foreign ownerships falls below 26%.