• CHI CSRC further regulated shareholding reduction by controlling shareholder.
• CHI CFA also reported the regulatory action by CHI CSRC on shareholding reduction.

Regulations

• Controlling shareholder cannot reduce shareholding in the secondary market if the stock market price of the firm is lower than it's IPO price/net asset value per share.
• Or no cash dividend distributed in the past 3 years or the accumulated dividends distributed is less than 30% of the average annual net profit in the last 3 year.
• If a listed company discloses that it has no controlling shareholder or actual controller, the largest shareholder and its other actual controller shall follow the requirements.
• Strictly control total amount of shareholding reduction by shareholders of listed firms.
• Guide them to reasonably arrange the pace of shareholding reduction.
• Encourage controlling shareholders, actual controllers and other shareholders to promise not to reduce their shareholdings or extend the lock-up period of shares.