On 30 January 2026, CHI CSRC proposed expanding strategic investor scope.
- CHI CSRC proposed to amend the Application Opinions on Provisions 9, 10, 11, 13, 40, 57, and 60 of the Measures for the Administration of Registration of Securities Offering by Listed Companies (Legal Application Opinion No. 18).
- Aims to implement national policies on promoting medium- and long-term funds entering the capital market and to improve the strategic investor framework for listed companies’ refinancing.
Proposal
- Eligible strategic investors would be expanded to include the National Social Security Fund, basic pension funds, enterprise and occupational annuities, commercial insurance funds, public mutual funds, and bank wealth-management products.
- These institutional investors would be classified as capital investors, while other real-economy investors would be classified as industrial investors.
- Strategic investors would be required, in principle, to subscribe to at least 5% of the listed company’s shares, allowing participation in corporate governance based on shareholding.
- Capital investors would be required to hold shares long term, hold a relatively large stake, nominate directors, and demonstrate the ability to introduce strategic resources or materially improve governance, internal controls, or core competitiveness.
- Listed companies would be required to disclose in their annual reports how strategic resources have been introduced and integrated, and the effectiveness of those measures.
- The amendments would strengthen supervision by prohibiting circumvention of minimum shareholding and lock-up requirements through nominee holdings or indirect share reductions.
Effectiveness
- Comment period for the consultation closes on 2 March 2026.
