The China Securities Regulatory Commission Introduces Stricter Regulations on Share Reduction Behavior
Market Information Network – August 28, 2023 09:38:03
BEIJING – In a recent announcement, the China Securities Regulatory Commission (CSRC) stated that it has taken into account market concerns and conducted a thorough evaluation of the share reduction system. As a result, the CSRC has decided to implement stricter regulations to govern the relevant share reduction behavior of relevant parties.
The CSRC’s new regulations stipulate that listed companies facing bankruptcy or net bankruptcy, as well as those that have failed to pay cash dividends over the past three years, with accumulated cash dividends amounting to less than 30% of the average annual net profit during that period, will be subject to increased scrutiny. Controlling shareholders and actual managers will not be granted second-level approval to reduce their shares in such companies. Individuals acting in conjunction with controlling shareholders and actual managers must also comply with these requirements. Furthermore, if a listed company reveals that it lacks both a controlling shareholder and an actual controller, the largest shareholder and its actual controller will be subject to the same regulations.
In addition, the CSRC aims to strictly control the total share reduction conducted by shareholders of other listed companies. It intends to guide these shareholders to arrange the pace of share reduction in a reasonable manner, taking into account market conditions. The CSRC also encourages controlling shareholders, actual managers, and other shareholders to commit to not reducing their shares or extending the lock-up period for their shares.
Furthermore, the CSRC is currently working on a revision of the “Several Regulations on the Reduction of Shareholdings of Shareholders, Directors, Supervisors and Senior Executives of Listed Companies.” The aim is to enhance the effectiveness of the rules, refine liability clauses, and intensify efforts to combat illegal shareholding reduction.
Original article: http://www.news.cn/fortune/2023-08/27/c_1129827641.htm
Responsible editor: Zhu Ying
The China Securities Regulatory Commission further regulates share reduction behavior
Market Information Network 2023-08-28 09:38:03 Source: Xinhuanet Comments:
Xinhua News Agency, Beijing, August 27 (Reporters Liu Yujia and Liu Hui) The China Securities Regulatory Commission announced on the 27th that it fully considered the concerns of the market, carefully studied and evaluated the share reduction system, and made a decision on regulate the relevant further. party share reduction behavior.
Data map of China Securities Regulatory Commission.
According to the requirements of the China Securities Regulatory Commission, if a listed company has bankruptcy or net bankruptcy, or has not paid cash dividends in the past three years, and the accumulated cash dividends are less than 30% of the average annual net profit. in the past three years, the controlling shareholder and the actual manager will not pass the second level approval, the market reduced its shares in the company. Persons acting in conjunction with controlling shareholders and actual managers must follow the above requirements; if a listed company discloses that it has no controlling shareholder or actual controller, the largest shareholder and its actual controller will follow the above requirements.
At the same time, strictly control the total share reduction by the shareholders of other listed companies, and guide them to reasonably arrange the speed of the share reduction in accordance with market conditions; encourage controlling shareholders, actual managers and other shareholders to pledge not to reduce their shares or extend the share lock-up period.
It is reported that the China Securities Regulatory Commission is rushing to revise the “Several Regulations on the Reduction of Shareholdings of Shareholders, Directors, Supervisors and Senior Executives of Listed Companies” to improve the effectiveness of the rules, refine the relevant liability clauses, and intensify the campaign to reduce illegal shareholding .
Original manuscript link:
http://www.news.cn/fortune/2023-08/27/c_1129827641.htm
Responsible editor: Zhu Ying
#China #Securities #Regulatory #Commission #regulates #share #discount #Industry #Watch #Market #Information #Network
