GUANGDONG Midea Electric Appliances Co Ltd suspended its planned share incentive scheme because it contravened recent rules issued by the stock regulator which seek to prevent management officials from making improper gains as a result of favorable timing.

Shenzhen-listed Midea suspended the scheme as the China Securities Regulatory Commission has barred companies from providing incentive programs while offering new shares at the same time, the firm said in a statement yesterday.

The new rules also affected Shanghai-listed Tebian Electric Apparatus Stock Co Ltd which had to suspend its incentive scheme on May 14.

Midea revealed the scheme in mid January. It applied to offer new shares publicly in February while the scheme was still pending approval by the stock regulator.

The new rules said a listed firm should not carry out new stock issues, asset injection or bond offerings within 30 days after having announced an incentive plan which shareholders have approved.

The Shanghai Securities News reported another 13 listed firms will have to change or scrap their stock incentive plans.