Ministry of Finance, State-owned Assets Supervision and Administration Commission of the State Council, China Securities Regulatory Commission and National Council for Social Security Fund, Implementing Measures for the Transfer of Certain State-owned Shares from the Domestic Securities Market to the National Social Security Fund

The transfer of shares by overseas listed companies to the National Council for Social Security Fund (NCSSF) shall comply with existing relevant provisions (Article 20).

Main contents: Upon the completion of the equity split reform where there is no longer differentiation between tradable and non-tradable shares for companies that conduct initial public offerings (Reform Completion), all companies limited by shares with state-owned shares that conduct initial public offerings (IPOs) of shares and the listing thereof on the domestic stock market shall transfer part of its state-owned shares that account for 10% of the number of shares actually issued at the time of IPO to the NCSSF, unless otherwise provided by the State Council. Where the number of shares held by state-owned shareholders is less than the number of shares to be transferred, the company shall transfer the actual shareholding (Article 6).

The NCSSF shall continue the lock-up period obligations of the former state-owned shareholders in respect of the transferred state-owned shares of domestic listed companies. Where the shares of a company limited by shares that conducts an IPO of shares and the listing thereof during the period between the Reform Completion and the promulgation of these Measures are transferred, the NCSSF shall, on top of the statutory and voluntary lock-up period as undertaken by the original state-owned shareholders, extend the lock-up period by three years (Article 13).