Bloomberg News

China CSRC May Ease Purchases of Stakes in Publicly Traded Units

January 04, 2012

Jan. 4 (Bloomberg) -- The China Securities Regulatory Commission may allow investors to increase their stakes in publicly traded subsidiaries without receiving prior approval to make capital markets more stable.

A shareholder with at least 30 percent of a listed company would no longer need approval from the regulator to boost its stake by 2 percentage points in a year, according to draft rules posted on the regulator’s website on Dec. 30.

The new rule would “encourage controlling shareholders of listed companies to increase their interests in the company at reasonable prices, further improving the inherent stability of the capital market,” the regulator said. Investors who make such purchases might be barred from selling shares for six months, according to the statement.

Shareholders with 50 percent or more may be allowed to increase their stakes without seeking approval, according to the draft rules.

--Editors: Nathaniel Espino, James Gunsalus

To contact the reporter on this story: Stephanie Tong in Hong Kong at stong17@bloomberg.net

To contact the editor responsible for this story: Chitra Somayaji at csomayaji@bloomberg.net


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