China tightens restrictions on listed companies’ trading suspension

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Chinese securities regulator plans to reduce the amount of time A-share listed stocks are allowed to stay suspended, addressing a longstanding concern that investors can be left stranded for months, unable to sell.

Under existing rules, companies can suspend their shares for as long as three months for “major asset restructuring,” which sometimes involve little more than shuffling assets from one unit to another.

Index compilers including MSCI made changes to suspension rules a condition for including Chinese stocks in their global benchmarks, to reduce the risk that investors will be unable to trade when they want.

The China . . .

 

 

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