http://www.zerohedge.com/news/2015-07-08/china-makes-selling-big-investors-illegal

With another bloody session in the books for China’s bursting equity bubble, it’s now abundantly clear that Beijing and the PBoC have lost control not only of the market but of the narrative as well, despite dozens of attempts to steer both in the “right direction.”

Having corralled selling by the National Social Security fund earlier this week and after discouraging local reporters from mentioning selling in the press, China has now made it illegal for big investors to dump shares over the next six months. Here are the details via Bloomberg:

China’s securities regulator banned major shareholders, corporate executives and directors from selling any of their stakes for six months, the latest effort to stop a $3.5 trillion rout in the nation’s equity market.

Controlling shareholders and investors holding more than a 5 percent stake in a company will be prevented from cutting their holdings over that time period, the China Securities Regulatory Commission said in a statement.

http://www.zerohedge.com/news/2015-07-07/china-futures-plunge-8-over-half-stocks-suspended-margin-debt-crashes-most-record

For a record 12th day in a row, Chinese margin debt balances have dropped with today's 8.5% collapse the largest in history. As of last night, there were around 570/1694 Shenzhen stocks halted/suspended and hundreds more on the Shanghai bourse leaving more than 54% of all Chinese stocks frozen ($2.6 trillion or 40% of value).

China continues to try to manage leverage down (raising margin requirements on stock futures) while encouraging speculation (easing rules for insurers to buy blue chips and financing the purchase of smaller company shares directly) and CYNK'ing the entire market - if it's not open, you can't sell it and the price cannot fall! It's not working as CSI-300 futures are now down 7.9% in the preopen.



*CHINA TRADING HALTS FREEZE $2.6 TRILLION, 40% OF TOTAL VALUE

President Xi Jinping’s government is ramping up efforts to combat the rout as policy makers seek to maintain confidence in the nation’s leadership and prevent a crash from weighing on the weakest economic expansion since 1990.

China’s selloff has upstaged Greece’s crisis for the attention of U.S. investors.

European leaders on Tuesday ordered Greece to present economic proposals to get new aid, setting a Sunday deadline for the country to accept a rescue package or face expulsion from the euro.

The Greek government today requested a three-year loan from the European Stability Mechanism. Its banks and the stock market will remain shut through Friday.

U.S. Stocks Retreat as China Equities Rout Spurs Growth Concern - Bloomberg Business

China’s benchmark stock index tumbled to a three-month low as another round of government support measures failed to allay concern that investors who borrowed to buy shares will keep unwinding those trades at a record pace.

China Stocks Plunge as State Support Fails to Revive Confidence - Bloomberg Business

Chinese stock market losses

30% fall in Chinese share prices since mid-June

$3 trillion wiped off value of companies

1,301 companies halted trading, that's more than 40% of the market

90m people in China affected - mostly small retail investors

150% how far shares had risen between June 2014 and June 2015