China Securities Regulatory Commission, Guiding Opinion on the Transfer of Existing Shares of Listed Companies that are Freed from Sale Restrictions

Issued: April 20 2008
Effective: As of date of issuance

Applicability: The term “existing shares” in the Opinion refers to the shares subject to a lock-up period of companies listed on the Shanghai or Shenzhen Main Board that have completed the reform regarding the separation of equity ownership and trading rights, and shares of companies listed on the Shanghai or Shenzhen Main Board issued prior to the initial public offering conducted after the reform regarding the separation of equity ownership and trading rights (Article 1).

Main Contents: Where a holder of those existing shares freed from the lock-up period plans to sell such shares and the number of shares sold will account for more 1% of the company's total shares in the coming month, it shall transfer the shares through the block trading system of a stock exchange (Article 3).