China Securities Regulatory Commission, Provisions on Strengthening the Regulation of Listed Securities Companies

Promulgated: April 3 2009
Effective: as of date of promulgation

Main Contents: Article 1 of the Provisions states that securities companies that carry out an initial public offering (IPO) of shares and the listing thereof, or carry out refinancing activities such as a subsequent offering or offering of convertible bonds shall fulfil the requirements of general securities laws and regulations (such as the Securities Law and Measures for the Administration of Initial Public Offerings of Shares and the Listing Thereof) and specific oversight requirements (such as the Regulations for the Oversight of Securities Companies and Measures for the Administration of the Offerings of Securities by Listed Companies).

Where an IPO, a refinancing activity or a major asset restructuring of a listed securities company involves a change in the shareholder or de facto controlling person that holds 5% or more of the company's equity, the materials for verification of the shareholder's qualifications shall be submitted (Articles 1 and 2). Listed securities companies shall state in the articles of association that any work unit or individual that holds or actually controls 5% or more of the securities company's equity without the approval of the State Council's securities regulatory authority shall carry out rectification within the time limit. Before rectification, such equity shall not carry voting rights (Article 3).