Good news again!
Just now, the Beijing Stock Exchange issued an announcement saying that it will severely crack down on and punish illegal shareholding reductions. According to the Beijing Stock Exchange, it was found that individual investors sold their shares in a short period of time after receiving shares from major shareholders through block trading, which violated the relevant provisions of the "Guidelines for the Continuous Supervision of Listed Companies on the Beijing Stock Exchange No. 8 - Share Reduction and Shareholding Management" on "If a major shareholder of a listed company reduces its holdings of the company's shares through block trading or transfer by agreement, the transferee shall not reduce its transferred shares within 6 months after the transfer".
In the process of reducing holdings, if the receiver violates the rules, it will cause certain pressure on the market and will inevitably attract market attention. Analysts believe that the timely issuance of similar announcements will play a role in "knocking the mountain and shaking the tiger" for the market. Avoid some violations.
Announcement of the Beijing Stock Exchange
Today, the Beijing Stock Exchange announced that recently, the Beijing Stock Exchange found that individual investors sold their shares in a short period of time after receiving shares from major shareholders through block trading, violating the relevant provisions of the "Beijing Stock Exchange Continuous Supervision Guidelines for Listed Companies No. 8 - Share Reduction and Shareholding Management" on "If a major shareholder of a listed company reduces its holdings of the company's shares through block trading or agreement transfer, the transferee shall not reduce its transferred shares within 6 months after the transfer".
The Beijing Stock Exchange investigated and dealt with it strictly and quickly, and implemented regulatory measures such as public reprimand and restriction on securities account trading for 6 months on relevant investors. At the same time, the Beijing Stock Exchange will transfer the relevant clues to the China Securities Regulatory Commission, and cooperate with the relevant departments to further investigate and deal with the above-mentioned violations of laws and regulations in accordance with the Securities Law and the regulations of the China Securities Regulatory Commission on share reduction.
Reduction rules
Last year, the China Securities Regulatory Commission (CSRC) made a request to further regulate the shareholding reduction behavior of relevant parties, clarifying that if a listed company has a breakage or net breakage, the controlling shareholder or actual controller shall not reduce the company's shares through the secondary market. In order to implement the above requirements and strengthen the supervision of key minority shareholding reductions, under the overall guidance of the China Securities Regulatory Commission, the Beijing Stock Exchange revised the "Beijing Stock Exchange Listed Companies Continuous Supervision Guidelines No. 8 - Share Reduction and Shareholding Management", which was issued and implemented on September 26 last year.
According to the development stage, corporate characteristics and regulatory priorities of listed companies on the Beijing Stock Exchange, the revised rules optimize and adjust the circumstances under which shareholding reductions are not allowed, further regulate the shareholding reduction behavior of controlling shareholders and actual controllers, and maintain the stable operation of the market.
The first is to clarify the circumstances under which the shareholding is not allowed to be reduced, and send a signal of strict supervision. In addition to the situation of breaking the issue and breaking the net, if there is a loss in the company's latest audited financial report, the controlling shareholder and the actual controller shall not reduce their holdings through the secondary market, bind the actual controller and controlling shareholder to the company's market performance and operating performance, prevent them from cashing out at will, guide them to pay attention to the quality of operation, actively maintain the stock price, and enhance investor confidence. At the same time, considering that small and medium-sized enterprises have a weak ability to resist risks, retaining a moderate surplus is conducive to the long-term development of the company, and the restriction on reducing holdings is not linked to dividends for the time being.
The second is to refine the specific implementation standards to facilitate understanding and implementation. Stipulate the specific calculation criteria and judgment time points for the circumstances in which the shareholding shall not be reduced, and clarify the restricted shareholding reduction method and the time range for the reduction of holdings, so as to facilitate market participants to understand and implement them, and reduce violations caused by misinterpretation of the rules.
The third is to clarify the caliber of implementation by special entities to prevent regulatory arbitrage. It is clarified that the shareholding reduction of the controlling shareholder or actual controller of the listed company shall be implemented mutatis mutandis; If there is no controlling shareholder or actual controller, the largest shareholder and its actual controller shall be executed mutatis mutandis, which is conducive to preventing regulatory arbitrage and maintaining the order of market transactions.
According to the rules, if the controlling shareholder and shareholders holding more than 5% of the shares (hereinafter collectively referred to as the major shareholders), the actual controller, and the directors, supervisors and senior executives of a listed company on the Beijing Stock Exchange plan to reduce their shareholdings through centralized bidding transactions on the Beijing Stock Exchange, they shall notify the company in a timely manner and disclose the shareholding reduction plan in advance 15 trading days before the first sale; The time period for each disclosure of shareholding reduction by controlling shareholders and actual controllers shall not exceed 3 months, and the time interval for each disclosure by other entities shall not exceed 6 months; If the total number of shares to be reduced within 3 months exceeds 1% of the total number of shares of the company, the shareholding reduction plan shall also be disclosed in advance 30 trading days before the first sale. If a major shareholder, actual controller, director, supervisor or senior executive of a listed company plans to reduce its shareholding through a block transaction or agreement transfer on the Beijing Stock Exchange, it shall notify the company in a timely manner, disclose the shareholding reduction plan in advance 15 trading days before the first block transaction or apply to the Beijing Stock Exchange for transfer by agreement, and perform the obligation of continuous information disclosure in accordance with Article 4 of the Guidelines.
Source: Brokerage China
Editor: Xiaoya