Issues Relevant to Pilot Reform Projects Regarding the Separation of Equity Ownership and Trading Rights of Listed Companies Circular
关于上市公司股权分置改革试点有关问题的通知
According to this Circular, the a pilot project is launched to reform the separation of equity ownership and trading rights of listed companies.
(Issued by the China Securities Regulatory Commission on, and effective as of, April 29 2005.)
(中国证券监督管理委员会于二零零五年四月二十九日发布，自发布之日起施行。)
Zheng Jian Fa [2005] No.32
证监发 [2005] 32号
All listed companies, their shareholders, sponsors, the Shanghai and Shenzhen Stock Exchanges and China Securities Depository and Clearing Corporation Limited:
各上市公司及其股东，保荐机构，上海、深圳证券交易所，中国证券登记结算公司:
With a view to implementing the State Council, Promoting the Reform, Opening Up and Stable Development of the Capital Markets Several Opinions (ref. Guo Fa [2004] No.3, the Opinions) and actively and reliably resolving the problem of separation of equity ownership and trading rights, we have decided, after study, to launch a pilot project to reform the separation of equity ownership and trading rights of listed companies. The pilot reforms must comply with the overall requirement of the following set forth in the Opinions: "When resolving this issue, the solution must respect market laws, contribute to the stability and development of the market and genuinely protect the lawful rights and interests of investors, in particular public investors," and proceed while respecting the principles of stable market development, fair and uniform rules, consultation on and selection of plans, vote by holders of tradable shares and implementation of step-by-step orderly operation as well as abiding by the procedures and requirements specified in this Circular. We hereby notify you as follows concerning relevant issues:
为了落实国务院《关于推进资本市场改革开放和稳定发展的若干意见》(国发[2004]3号，以下简称《若干意见》)，积极稳妥解决股权分置问题，经研究决定，启动上市公司股权分置改革试点工作。改革试点须遵循《若干意见》提出的“在解决这一问题时要尊重市场规律，有利于市场的稳定和发展，切实保护投资者特别是公众投资者的合法权益”的总体要求，按照市场稳定发展、规则公平统一、方案协商选择、流通股东表决、实施分步有序的操作原则进行，并遵守本通知规定的程序和要求。现就有关问题通知如下:
1. With a view to maintaining market stability and protecting the lawful rights and interests of investors, in particular public investors, the China Securities Regulatory Commission (the CSRC) has held consultations and determined pilot companies based on the reform intentions of shareholders of listed companies and the recommendations of sponsors. The shareholders of pilot listed companies shall themselves decide on a solution to the problem of the separation of equity ownership and trading rights.
一、 为了保持市场稳定、保护投资者特别是公众投资者合法权益，中国证券监督管理委员会(以下简称中国证监会)根据上市公司股东的改革意向和保荐机构的推荐，协商确定试点公司。试点上市公司股东自主决定股权分置问题解决方案。
2. Pilot listed companies shall promptly perform their information disclosure obligations, truthfully, accurately and completely disclose information and duly carry out the applications for the suspension and resumption of the trading of their shares:
二、 试点上市公司应当及时履行信息披露义务，真实、准确、完整地披露信息，并做好申请股票停复牌工作:
(1) once it has been determined that a pilot reform project regarding the separation of equity ownership and trading rights (Separation) is to be implemented, such information shall immediately be disclosed and an application made to suspend trading of the company's shares;
(一) 在被确定进行股权分置改革试点的第一时间披露该信息，并申请公司股票停牌。
(2) within two working days of the board of directors adopting a resolution on a Separation reform plan, an announcement of the board resolutions, the opinions of the independent directors, an explanation of the Separation reform, the recommendations of the sponsors, and a notice of an extraordinary shareholders' general meeting shall be issued and an application made to resume trading of the company's shares;
(二) 在董事会就股权分置改革方案做出决议的两个工作日内公告董事会决议、独立董事意见、股权分置改革说明书、保荐机构的保荐意见、召开临时股东大会的通知，并申请公司股票复牌。
the pilot listed company shall apply for a suspension of the trading of its shares for the period between the day following the date of record for the extraordinary shareholders' general meeting and the announcement of the resolutions of the extraordinary shareholders' general meeting;
试点上市公司应当申请自本次临时股东大会股权登记日的次日起至临时股东大会决议公告前公司股票停牌。
(3) once the extraordinary shareholders' general meeting adopts a resolution on the Separation reform plan, the resolutions of the extraordinary shareholders' general meeting shall be announced within two working days and an application made to resume trading of the company's shares. If the implementation of the company's reform plan requires a continued suspension of trading, an application may be made to the stock exchange to continue the suspension.
(三) 在临时股东大会对股权分置改革方案做出决议后，应当在两个工作日内公告临时股东大会决议并申请公司股票复牌。公司改革方案实施需要继续停牌的，可以向证券交易所申请继续停牌。
3. When a pilot listed company convenes an extraordinary shareholders' general meeting, relevant arrangements shall be made to enable holders of tradable shares to attend the shareholders' general meeting and exercise their rights.
三、 试点上市公司召开临时股东大会，应当为流通股股东参加股东大会行使权利做出相关安排。
(1) The notice of the extraordinary shareholders' general meeting shall expressly inform the holders of tradable shares of the rights that they have and the time and conditions for, and manner of, asserting such rights.
(一) 临时股东大会通知应当明确告知流通股股东具有的权利及主张权利的时间、条件和方式。
(2) The notice for the extraordinary shareholders' general meeting shall be announced at least three times before the extraordinary shareholders' general meeting is held and a network voting system shall be provided to permit shareholders to participate in the vote.
(二) 临时股东大会召开前应当不少于三次公告召开临时股东大会的催告通知，并为股东参加表决提供网络投票系统。
(3) Independent directors shall solicit votes from the holders of tradable shares for the vote on the Separation reform plan.
(三) 独立董事应当向流通股股东就表决股权分置改革方案征集投票权。
(4) The adoption of a resolution at the extraordinary shareholders' general meeting on the Separation reform plan proposed by the board of directors shall require two-thirds or more of the voting rights held by the shareholders participating in the vote and two-thirds or more of the voting rights held by the holders of tradable shares participating in the vote.
(四) 临时股东大会就董事会提交的股权分置改革方案做出决议，必须经参加表决的股东所持表决权的三分之二以上通过，并经参加表决的流通股股东所持表决权的三分之二以上通过。
4. The board of directors of a pilot listed company shall engage a sponsor to assist it in formulating the Separation reform plan, carry out a due diligence investigation of relevant matters, examine relevant documents, issue a sponsor opinion and assist in implementing the Separation reform plan. The sponsor shall designate three sponsor representatives to be specifically in charge of sponsorship matters.
四、 试点上市公司董事会应当聘请保荐机构协助制订股权分置改革方案，对相关事宜进行尽职调查，对相关文件进行核查，出具保荐意见，并协助实施股权分置改革方案。保荐机构应当指定三名保荐代表人具体负责保荐事宜。
5. When a holder of non-tradable shares in a pilot listed company sells its shares that have obtained the right to trade through listing and trading on a stock exchange, it shall issue an undertaking of step-by-step listing and trading and perform the related information disclosure obligation.
五、 试点上市公司的非流通股股东，通过证券交易所挂牌交易出售获得流通权的股份，应当做出分步上市流通承诺并履行相关信息披露义务。
(1) A holder of non-tradable shares in a pilot listed company shall undertake that it will not list and trade or transfer its non-tradable shares for a period of at least 12 months from the date on which it obtained the right to list and trade the same.
(一) 试点上市公司的非流通股股东应当承诺，其持有的非流通股股份自获得上市流通权之日起，至少在十二个月内不上市交易或者转让。
(2) A holder of non-tradable shares holding 5% or more of the total number of shares of a pilot listed company shall undertake that once the undertaking period specified in the preceding item expires, the number of shares it sells by listing, trading and selling on a stock exchange will not account for more than 5% of the total number of shares of the company in 12 months and will not exceed 10% in 24 months.
(二) 持有试点上市公司股份总数百分之五以上的非流通股股东应当承诺，在前项承诺期期满后，通过证券交易所挂牌交易出售股份，出售数量占该公司股份总数的比例在十二个月内不超过百分之五，在二十四个月内不超过百分之十。
(3) If the number of shares of a holder of non-tradable shares of a pilot listed company sold after listing and trading on a stock exchange reaches 1% of the total number of shares of the company, the same shall be announced within two working days of the date on which the same occurred. The shareholder shall not be required to cease the sale of shares during the announcement period.
(三) 试点上市公司的非流通股股东，通过证券交易所挂牌交易出售的股份数量，达到该公司股份总数百分之一的，应当自该事实发生之日起两个工作日内做出公告，公告期间无需停止出售股份。
6. If the disposal of non-tradable shares in a pilot listed company requires the approval of the relevant department, the approval document shall be obtained and the same announced before the extraordinary shareholders' general meeting is held.
六、 试点上市公司非流通股股份处置需经有关部门批准的，应当在临时股东大会召开前取得批准文件并公告。
7. Stock exchanges and securities depository and clearing institutions shall formulate business operation guidelines in accordance with the requirements of this Circular and carry out the matters related to obtaining the right to list and trade non-tradable shares of pilot listed companies.
七、 证券交易所、证券登记结算机构应当根据本通知要求，制定业务操作指引，并办理试点上市公司非流通股股份获得上市流通权的有关事项。
Stock exchanges shall carry out compliance examinations of the documents submitted by pilot listed companies that intend to implement Separation reform plans and shall submit the sales of shares by holders of formerly non-tradable shares of pilot listed companies and related information disclosures to ongoing oversight.
证券交易所对试点上市公司实施股权分置改革提交的申报文件进行合规性审查，对试点上市公司原非流通股股东出售股份及相关信息披露工作实施持续监管。
8. The directors and shareholders of pilot listed companies shall act in good faith and ensure that information that is disclosed does not contain any false or misleading statements or material omissions.
八、 试点上市公司董事及其股东应当诚实守信，保证所披露的信息不存在虚假记载、误导性陈述或者重大遗漏。
Listed companies may not implement pilot Separation reform projects without authorization or publish misleading information relating to such projects. Inaccurate reports by the news media shall be promptly clarified.
上市公司不得擅自进行股权分置改革试点或者发布与此相关的误导性信息。对新闻媒体的不实报道，应当及时澄清。
9. Sponsors and sponsor representatives shall carry out their duties diligently and faithfully and ensure that the sponsor opinions that they issue do not contain any false or misleading statements or material omissions.
九、 保荐机构及其保荐代表人应当勤勉尽责，保证出具的保荐意见书不存在虚假记载、误导性陈述或者重大遗漏。
10. The CSRC will oversee the pilot reforms. The CSRC will impose administrative penalties on pilot listed companies and their senior management personnel, sponsors and their sponsor representatives and other listed companies that violate the provisions hereof, or that use pilot Separation reform projects of listed companies to engage in insider trading, manipulate the market or engage in other forms of securities fraud. If a criminal offence is suspected, the case will be transferred to the judicial authorities to pursue the criminal liability of the offender in accordance with the law.
十、 中国证监会对改革试点工作实施监督管理。对试点上市公司及其高级管理人员、保荐机构及其保荐代表人、其它上市公司，违反本通知的规定，或者利用上市公司股权分置改革试点进行内幕交易、操纵市场或者其它证券欺诈行为的，由中国证监会给予行政处罚。涉嫌犯罪的，移送司法机关依法追究刑事责任。
11. This Circular shall be implemented as of the date of issuance.
clp reference:3710/05.04.29prc reference:证监发 [2005] 32 号promulgated:2005-04-29effective:2005-04-29十一、 本通知自发布之日起施行。
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