- SZSE proposed 6 business rules to improve the investment value of listed companies.
- Issued answers to reporters' questions about the newly-proposed business rules.
- Follows CHI CSRC April 2024 published opinions on promoting capital market.
- Also follows CHI CSRC April 2024 issued opinions to reform delisting system.
Reduction of Shareholding
- Published draft SZSElisted company self-discipline supervision guidelines no. 18 - shareholders, directors, supervisors, and senior managers reducing shareholdings.
- Strictly manage the reduction of holdings by major shareholders.
- If the shareholding ratio of a single shareholder is less than 5%, but the total shareholding ratio of persons acting in concert with them reaches more than 5%, the regulations on reduction of shareholdings by major shareholders shall be followed.
- If a major shareholder is involved in any violation of laws and regulations related to the listed company, they shall not reduce holdings within the corresponding period.
- Implement the 15 trading day pre-disclosure requirement for shareholding reduction.
- Clarify the rules for reduction of holdings in situations such as divorce, dissolution and separation, to prevent use of these methods to bypass regulations.
Consultation Period
- The deadline for comments: 19 April 2024.
- In April 2024, SSE proposed 7 rules to develop the capital market.
