The China Securities Regulatory Commission will amend trading rules to ensure shareholders sell stocks "in a regulated and orderly" way, aimed at ultimately reducing market volatility, Reuters reported May 26, citing a posting on the regulator's website.
The securities regulator's spokesman, Deng Ge, said the watchdog will also implement changes to how some bonds are sold.
Deng's comments came in response to recent volatility caused by some major shareholders' sell-off, according to the report.
Meanwhile, the regulator reportedly revised securities underwriting rules to prevent freezing a large amount of investor capital when convertible bonds are issued, which hampered money and bond markets. Now, convertible bond investors will have to make payments only when they are awarded the underlying securities rather than when they subscribed to the issues, Reuters reported.