(Recasts headline, adds more companies under investigation)
July 27 (Reuters) - Eight Chinese listed companies, including China Railway Erju Co Ltd, 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 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 Ltd, Nanfeng Ventilator Co Ltd, Shandong Yanggu Huatai Chemical Co Ltd and Inner Mongolia Lantai Industrial Co Ltd, said their controlling shareholders were under a CSRC probe for possibly selling shares illegally.
Chinese 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.
CSRC has also been examining unusual trades involving margin trading and short-selling to stabilise the market. (Reporting by Norihiko Shirouzu and Tina Qiao; Additional reporting by Samuel Shen; Editing by Jason Neely and Ryan Woo)