Share Reduction Activities to be Further Regulated
ISSUING AUTHORITY:
Shanghai Stock Exchange, Shenzhen Stock Exchange
DATE OF ISSUANCE:
September 26, 2023
On September 26, the Shanghai Stock Exchange and the Shenzhen Stock Exchange issued a Notice on Further Regulation of Share Reduction Activities (the “Notice”).
According to the Notice, if a listed company experiences a breach of the issuance price or net asset value, if it has not paid cash dividends in the past three years, or if the cumulative cash dividends amount to less than 30% of the average net profit over the past three years, the controlling shareholder or actual controller shall not reduce their holdings of the company's shares through the secondary market.
Under the Notice, the secondary market refers to centralized price-bidding transactions and block trades. The controlling shareholder or actual controller shall judge whether there is any circumstance under which the shareholding reduction is prohibited disclosing a shareholding reduction plan in advance.
Reference:
《關于進一步規范股份減持行為有關事項的通知》（上海證券交易所）
《關于進一步規范股份減持行為有關事項的通知》（深圳證券交易所）
