Shenzhen Branch of the China Securities Depositary and Clearing Corporation Limited, Registration of Equity Distributions and Rights Issues of Listed Companies Operational Guidelines

Issued: 2 November 2001
Effective: 12 November 2001

Main contents: According to the Circular, equity distributions and rights issues by companies listed on the Shenzhen Stock Exchange shall be registered on such dates as determined by Shenzhen Branch of the China Securities Depositary and Clearing Corporation Limited (Part One, Section One). Equity distributions include the distribution of bonus shares and cash dividends, both of which shall be credited to the accounts of the relevant shareholders one day after the registration date (Part One, Sections Three and Four). Institutional investors and individual investors may not receive the same percentage in the case of cash dividends because of the effect of income tax (Part One, Section Five). Subscription for rights issues shall begin one day after the registration date and shall last for 10 days (Part Two, Section Two). Payments for rights issue subscriptions shall be cleared on a daily basis during the subscription period (Part Two, Section Four). Fractions of a share resulting from a distribution or a rights issue shall be aggregated from the smallest fraction up to the minimum unit of one share to the credit of the shareholder who holds the largest fraction in the aggregation (Part Three, Section One).
Repealed legislation: Shenzhen Stock Exchange, Registration of Interest Distributions and Rights Issues of Listed Companies Operational Guidelines