China – CSRC Major Shareholding / Takeover Disclosure Requirements

China – CSRC Major Shareholding / Takeover Disclosure Requirements

On 5 January 2024, CHI CSRC proposed interpretation of articles of measures.

  • CHI CSRC drafted proposal for public feedback re interpretation, application of articles 13 and 14 of Measures for the administration of the takeover of listed companies.

Interpretation

  • Related to major shareholding disclosure requirements for investors and their concerted actors when their major shareholding reaches or changes by increments of 5% in listed companies.
  • CHI CSRC aims to unify, clarify the interpretation by adopting the scale standard for all cases, making it easier for investors to understand and comply with the regulations.
  • This approach is expected to reduce unintentional violations, enhance transparency in market, particularly re major shareholders' equity and corporate control changes.

Effectiveness

  • The consultation is open until 4 February 2024.