CSRC: Strategic Investors Must Not Evade Minimum Shareholding and Lock-up Period Requirements by Any Means

The CSRC has issued a decision on the application opinions regarding amendments to Articles 9, 10, 11, 13, 40, 57, and 60 of the "Administrative Measures for the Registration of Securities Issuance by Listed Companies" — Securities and Futures Legal Application Opinion No. 18.

The main content includes requiring strategic investors, based on long-term holding of a significant proportion of shares and nomination of directors to participate in corporate governance, to deeply understand the industrial development of listed companies, be capable of introducing strategic resources to listed companies, or significantly improve corporate governance and internal controls of listed companies, thereby promoting market resource integration or enhancing core competitiveness.

Listed companies are required to disclose the implementation and effects of strategic resource introduction and integration in their annual reports.

It is emphasized that strategic investors must not evade minimum shareholding and lock-up period requirements by any means, avoiding violations such as acting as nominal holders or reducing holdings through indirect channels, which would damage the credibility of the system.