China – CSRC Shareholder Disclosure

China – CSRC Shareholder Disclosure

On 7 February 2021, SSE and SZSE answered reporters' questions about CSRC guidelines.

  • Exchanges committed to carrying out the tasks for ensuring shareholder disclosure.
  • Sponsor institutions, securities service institutions and other intermediaries shall be diligent and responsible in verifying shareholder information disclosed by the issuer.


  • CSRC issued guidelines for disclosure by shareholders of companies applying for IPO.
  • To prevent situations where shadow shareholders trade shares before going public.


  • Reiterate principle requirements of shareholder eligibility; shareholders are required to clean up their equity holdings to meet regulations, before submitting IPO application.
  • New shareholders who have invested within 12 months of IPO application are required to lock up their shares for 36 months; intermediaries must verify new shareholders.
  • Strengthen verification of natural person shareholders and multi-level nested institutional shareholders whose share transaction prices are clearly abnormal.
  • Intermediaries must thoroughly check basic information of such shareholders, the background of the shareholding, source of funds, violation of eligibility requirements.
  • Further compact the responsibilities of intermediaries, to focus on verification of shareholders with abnormal share prices and shareholders close to the listing.
  • If an issuer’s shareholders are suspected of illegal share purchases or abnormal trading prices, it may seek assistance from departments re AML and anti-corruption.