Big A-share investors sell stocks to ESOPs

Large shareholders in a number of listed A-share companies have sold down some of their holdings to employee stock ownership plans or ESOPs in the past week, in a move that comes after China's securities authorities recently strengthened regulations about the behavior of major shareholders.

On June 1, Shenzhen-listed pharmaceutical group Shenzhen Salubris Pharmaceutical Co Ltd announced its ESOP bought 209.2 million shares in a block trade worth 598 million yuan ($87.98 million), or about 2 percent of company's total capital.

A source, who did not want to be named, estimated that more than 10 companies have done or will do the same.