China is seeking to reduce the period of time listed companies can suspend their shares, citing abuses by companies that halt trading during volatile markets.
Trading halts for restructuring will be limited to 10 days, according to proposals from the Shanghai and Shenzhenstock exchanges published late Wednesday.
Previously, companies could suspend their shares for up to three months by saying that they are undergoing major restructuring.
For suspensions dealing with control rights or tender offers, it should be no longer than five trading days. Furthermore, the suspension time for other exceptions should be no more than 25 trading days.
Earlier this month, the China Securities Regulatory Commission clarified the basic principles for the suspension of trading in listed companies, which is to shorten the suspension period and strengthen disclosure requirements.
The exchanges are allowed to take certain measures, such as on-site inspections and forced resumptions of trading to deal with companies that force unreasonable delays or refuse to resume trading.