State-owned Assets Supervision and Administration Commission of the State Council, Tentative Provisions for the Administration of the Acquisition of Shares of Listed Companies by State-owned Work Units

Main Contents: Where the net aggregate shares of a listed company acquired by a state-owned work unit in a financial year by way of transfer through the securities trading system of a stock exchange (i.e. the balance of shares acquired by the state-owned work unit after the deduction of shares transferred by the work unit to other parties) does not reach 5% of the total share capital of the listed company, such decision to acquire shares shall be made by the state-owned work unit in accordance with its internal administration procedure, and the state-owned work unit shall, before January 31 each year, file a record on the details of the acquisition of shares of the listed company in the preceding year through the securities trading system with the relevant state-owned assets supervision and administration authority at or above the provincial level. Where the shares acquired reach or exceed 5% of the total share capital of the listed company, the state-owned work unit may only implement the proposal to acquire shares of the listed company after it has filed a record with the relevant state-owned assets supervision and administration authority at or above the provincial level. Where a state-owned work unit acquires shares of a listed company through different entities that it controls, the ratio of acquisition shall be calculated in aggregate (Article 9).