Shareholders of China’s Big Listed Companies Are Reducing their Holdings and Escaping the Stock Market

Major shareholders of listed Chinese companies are seizing the chance to quickly sell off their holdings as China’s stock market seems to ease up during the 90-day trade truce between the U.S. and China.

A man checks stock price movements at a securities company in Beijing, on July 4, 2018. Greg Baker/AFP/Getty Images

Major shareholders of listed Chinese companies are seizing the chance to quickly sell off their holdings as China’s stock market seems to ease up during the 90-day trade truce between the U.S. and China.

Due to the U.S.-China trade war, China’s stock market has been in crisis. Stock prices plummeted rapidly with the total market value shrinking by more than a quarter this year. Listed companies, especially those in the private enterprise capital chain, are on the verge of collapse, so the Chinese Communist Party (CCP) has been forced to bail out the stock market.