CSRC to nip stock split trend in bud

The China Securities Regulatory Commission said it will crack down on any speculative or insider trading in shares related to anticipated announcements about stock splits.

CSRC Chairman Liu Shiyu remarked earlier this month that listed companies should use stock splits for the right reasons, else they would become targets of regulatory scrutiny.

In recent months, as many as nine A-share companies applied to the CSRC to split their stocks, promising to issue 30 shares for each 10 shares held by shareholders.