China moves to limit equity selling as slump extends to Hang Seng

Chinese authorities have banned major shareholders and executives from selling any of their stakes in listed companies, in a fresh bid to stem selling in its major stockmarkets.

The China Securities Regulatory Commission said those investors holding positions in excess of 5% of a company’s equity must hold on to them over the next six months.

The Shanghai Stock Exchange’s composite index fell another 5.9% to 3,507.19 on Wednesday.

That dragged the Hang Seng 5.84% lower to hit 23,516.56 points on heavy trading volumes - cutting its year-to-date gains to 3.1% - after having plummeted by 8.5% at one point in the session. That was the Hong Kong benchmark’s largest fall since November 2008.

As of 14:22 the Fidelity China Special Situations investment trust was 9.02% lower to 124p.