China bans major shareholders from selling for 6 months
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China bans major shareholders from selling for 6 months

China’s markets showed signs of recovery Thursday as regulators attempted to halt the volatility that has seen shares values fall more than 30 percent since their June peak.

The benchmark Shanghai Composite recovered from early losses to move into positive territory as authorities banned shareholders holding stakes of more than 5 percent from selling shares for six months.

However, any recovery is tempered by the fact that more than 40 percent of listed companies have suspended trading in an attempt to insulate themselves from the meltdown.

China’s Xinhua news reported Thursday that authorities have launched a probe into “vicious short-selling”, adding that authorities were “about to crack down on operations that are in violation of the law and regulations in a heavy-handed manner”.

Hong Kong’s Hang Seng Index also showed signs of recovery, gaining 3.3 percent after tumbling 5.8 percent Wednesday.

At noon, Japan’s Nikkei225 was down 0.69 percent and South Korea’s was off 0.64 percent.