Editorial Summary

The Shanghai Composite Index fell 0.73 percent to close at 3,733.503 while the Shenzhen Composite Index dropped 0.65 percent to close at 1,122.65 on Tuesday. Trading volume on the Shanghai and Shenzhen Stock Exchanges reached RMB 148.302 billion and RMB 61.94 billion, respectively.

Shares of Hainan Airlines (600221.SH), Southern Airlines (600029.SH, NYSE: ZNH), Air China Ltd. (601111.SH) and China Eastern Airlines (600115.SH, 0670.HK, NYSE: CEA) fell 5.45 percent, 5.32 percent, 5.21 percent and 4.16 percent, respectively, to reach RMB 8.67, RMB 13.18, RMB 15.46 and RMB 11.30 the same day.

The China Securities Regulatory Commission (CSRC) has released new regulations regarding the issue of company stock options, reports Hexun citing listed company sources. Under the new rule, companies cannot price issued shares below half of its most recent 20-day trading average price. The rule also stipulates that stockholders must wait 36 months before transferring their options to another party.