EIGHT listed companies, including China Railway Erju Co., said over the weekend that their controlling shareholders were being investigated by the country’s securities regulator over possible illegal trading of shares.

    China Railway Erju, which lists shares in Shanghai, said in an exchange filing that the China Securities Regulatory Commission (CSRC) has launched an investigation into trades made by its parent company earlier this year, for possibly violating rules that bar major shareholders from buying and selling shares too frequently.

    Seven other companies, including Shanghai Kinlita Chemical Co., Nanfeng Ventilator Co., Shandong Yanggu Huatai Chemical Co. and Inner Mongolia Lantai Industrial Co., said their controlling shareholders were under a CSRC probe for possibly selling shares illegally.

    Regulators have recently barred major shareholders from reducing holdings in their companies over the next six months, part of efforts to put a floor under the stock market.

    The CSRC has also been examining unusual trades involving margin trading and short-selling to stabilize the market.

    (SD-Agencies)