• CHI CSRC answered questions from reporters on matters related to the divorce of major shareholders of listed companies and the resulting division of company shares.
• Background
• Since the beginning of 2023, there have been a number of incidents in the market where major shareholders of listed companies split their shares due to divorce.
• There is concern that this behavior is bypassing shareholding reduction arrangements.

Division of Shares

• CHI CSRC said that major shareholders of listed companies, directors, managers, as key minority, have special obligations in the company's governance and operation.
• They should consciously regulate the behavior of shareholding reduction, and must not circumvent restrictions by any means such as divorce, dissolution, liquidation, division.
• All such parties should comply with relevant regulations on shareholding reduction.