China is to extend a ban on stock sales by large shareholders until permanent rules to restrict such sales take effect, as authorities seek to calm market fears over the lock-up that was due to expire tomorrow.
China’s blue-chip stock index, the CSI 300, tumbled 7 per cent on Monday, raising the prospect of a return to the panic selling of last summer when the main index was down 45 per cent at one stage.
Analysts blamed Monday’s fall on fears over the impending end of the ban, which was imposed in early July.
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