Caixin
Nov 28, 2018 09:05 PM
FINANCE

Shareholders Bail Out as Local Governments Bail In

Concern is mounting that big shareholders are taking advantage of price gains triggered by loans from government-backed rescue funds to offload their stakes. Photo: VCG
Concern is mounting that big shareholders are taking advantage of price gains triggered by loans from government-backed rescue funds to offload their stakes. Photo: VCG

* Major shareholders and company executives have sold shares worth a total of 11.2 billion yuan ($1.61 billion) so far this month, almost triple the amount in all of October

* Analysts say selling shares after a government bailout is unethical and isn’t good for the company long-term

(Beijing) — Three institutional investors in Poten Environment Group Co. Ltd. have put plans to sell their shares in the company on ice after a public outcry forced them to back down, underscoring market sensitivity to stock disposals amid the government’s ongoing bailout campaign.

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