Guiding Opinions on the Launch of the Pilot Project for Preference Shares

1. Rights and obligations of holders of preference shares

一、优先股股东的权利与义务

(1) Meaning of preference shares: the term “preference shares” means, in accordance with the Company Law, a specified type of shares other than generally specified common shares, the holders of which have preference over holders of common shares in the distribution of company profits and remaining property but whose rights to participate in the decision making and management of the company and other such rights are limited.

（一）优先股的含义。优先股是指依照公司法，在一般规定的普通种类股份之外，另行规定的其他种类股份，其股份持有人优先于普通股股东分配公司利润和剩余财产，但参与公司决策管理等权利受到限制。

Unless otherwise provided herein, the rights and obligations of holders of preference shares and the management of preference shares shall comply with the Company Law. During the pilot period, the offering of preference shares of varying seniority in terms of the distribution of dividends and the distribution of remaining property is not permitted, but the offering of preference shares with differences in other terms is permitted.

除本指导意见另有规定以外，优先股股东的权利、义务以及优先股股份的管理应当符合公司法的规定。试点期间不允许发行在股息分配和剩余财产分配上具有不同优先顺序的优先股，但允许发行在其他条款上具有不同设置的优先股。

(2) Preference in the distribution of profits: holders of preference shares shall have preference over holders of common shares in the distribution of company profits at the specified par dividend rate. The company shall pay dividends to holders of preference shares in cash, and may not distribute profits to holders of common shares until it has paid in full the specified dividends to the holders of the preference shares.

（二）优先分配利润。优先股股东按照约定的票面股息率，优先于普通股股东分配公司利润。公司应当以现金的形式向优先股股东支付股息，在完全支付约定的股息之前，不得向普通股股东分配利润。

The company shall specify the following matters in its articles of association: (1) whether the dividend rate of preference shares is a fixed dividend rate or a floating dividend rate, and correspondingly specify the fixed dividend rate level or method of calculating the floating dividend rate; (2) whether the company must distribute profits if it has profits available for distribution after taxes; (3) if the company's profits available for distribution for the current financial year are insufficient and it does not distribute dividends to the holders of the preference shares in full, whether the shortfall will be cumulated to the following financial year; (4) whether, after the distribution of dividends at the specified dividend rate, holders of preference shares have the right to participate in the distribution of the remaining profit together with the holders of common shares; and (5) other matters that have a bearing on the distribution of profits in connection with preference shares.

公司应当在公司章程中明确以下事项：（1）优先股股息率是采用固定股息率还是浮动股息率，并相应明确固定股息率水平或浮动股息率计算方法。（2）公司在有可分配税后利润的情况下是否必须分配利润。（3）如果公司因本会计年度可分配利润不足而未向优先股股东足额派发股息，差额部分是否累积到下一会计年度。（4）优先股股东按照约定的股息率分配股息后，是否有权同普通股股东一起参加剩余利润分配。（5）优先股利润分配涉及的其他事项。

(3) Preference in the distribution of remaining property: when the company is liquidated upon dissolution, bankruptcy or otherwise, the liquidation amount specified in the company's articles of association and the undistributed dividends shall be paid on a preference basis to the holders of preference shares from the company's property remaining after liquidation carried out in accordance with the Company Law and the Bankruptcy Law, and if the remaining property is insufficient, the distribution shall be made pro rata according to the shareholding percentages of the holders of preference shares.

（三）优先分配剩余财产。公司因解散、破产等原因进行清算时，公司财产在按照公司法和破产法有关规定进行清偿后的剩余财产，应当优先向优先股股东支付未派发的股息和公司章程约定的清算金额，不足以支付的按照优先股股东持股比例分配。

(4) Conversion and buyback of preference shares: the company may specify in its articles of association the conditions, prices and percentages for the conversion of preference shares into common shares and the buyback of preference shares by the issuer. It may be specified that conversion options or buyback options shall be exercised by the issuer or by the holders of preference shares. If the issuer requests the buyback of preference shares, it must pay the dividends in arrears in full, except in the case of a commercial bank that has issued preference shares to top up its capital. Once the preference shares have been bought back, a corresponding write-down of the total number of outstanding preference shares shall be made.

（四）优先股转换和回购。公司可以在公司章程中规定优先股转换为普通股、发行人回购优先股的条件、价格和比例。转换选择权或回购选择权可规定由发行人或优先股股东行使。发行人要求回购优先股的，必须完全支付所欠股息，但商业银行发行优先股补充资本的除外。优先股回购后相应减记发行在外的优先股股份总数。

(5) Limitations on voting rights: except in the circumstances set forth below, holders of preference shares shall not attend shareholders' general meetings, and voting rights do not attach to the shares they hold: (1) revision of provisions of the company's articles of association relating to preference shares; (2) a one-time reduction or aggregate reductions of the company's registered capital exceeding 10%; (3) merger, division, liquidation or change in the corporate form of the company; (4) issuance of preference shares; or (5) another circumstance specified in the company's articles of association. Resolutions on the aforementioned matters shall, in addition to requiring at least two-thirds of the votes held by the holders of common shares (including holders of preference shares with restored voting rights) present at the meeting for adoption, require at least two-thirds of the votes held by the holders of preference shares (excluding holders of preference shares with restored voting rights) present at the meeting for adoption.

（五）表决权限制。除以下情况外，优先股股东不出席股东大会会议，所持股份没有表决权：（1）修改公司章程中与优先股相关的内容；（2）一次或累计减少公司注册资本超过百分之十；（3）公司合并、分立、解散或变更公司形式；（4）发行优先股；（5）公司章程规定的其他情形。上述事项的决议，除须经出席会议的普通股股东（含表决权恢复的优先股股东）所持表决权的三分之二以上通过之外，还须经出席会议的优先股股东（不含表决权恢复的优先股股东）所持表决权的三分之二以上通过。

(6) Restoration of voting rights: if the company fails to pay dividends on preference shares as agreed for an aggregate of three financial years or for two financial years in succession, holders of preference shares shall have the right to attend shareholders' general meetings and the voting rights specified in the company's articles of association shall attach to each of the preference shares. For cumulative preference shares, voting rights shall be restored until the company pays in full the dividends in arrears. For non-cumulative preference shares, voting rights shall be restored until the dividends for the year in question have been paid in full by the company. Other circumstances under which voting rights of preference shares are restored may be specified in the company's articles of association.

（六）表决权恢复。公司累计3个会计年度或连续2个会计年度未按约定支付优先股股息的，优先股股东有权出席股东大会，每股优先股股份享有公司章程规定的表决权。对于股息可累积到下一会计年度的优先股，表决权恢复直至公司全额支付所欠股息。对于股息不可累积的优先股，表决权恢复直至公司全额支付当年股息。公司章程可规定优先股表决权恢复的其他情形。

(7) Calculations relating to the type of shares: when calculating shareholding percentages in connection with the following matters, only common shares and preference shares with restored voting rights shall be counted: (1) a request to call an extraordinary shareholders' general meeting pursuant to Article 101 of the Company Law; (2) convening and presiding over a shareholders' general meeting pursuant to Article 102 of the Company Law; (3) submission of an extempore motion for consideration at a shareholders' general meeting pursuant to Article 103 of the Company Law; or (4) determination of the controlling shareholder pursuant to Article 217 of the Company Law.

（七）与股份种类相关的计算。以下事项计算持股比例时，仅计算普通股和表决权恢复的优先股：（1）根据公司法第一百零一条，请求召开临时股东大会；（2）根据公司法第一百零二条，召集和主持股东大会；（3）根据公司法第一百零三条，提交股东大会临时提案；（4）根据公司法第二百一十七条，认定控股股东。

2. Offering and trading of preference shares

二、优先股发行与交易

(8) Scope of issuers: issuers making public offerings of preference shares shall be limited to listed companies specified by the China Securities Regulatory Commission (CSRC), and issuers making private placements of preference shares shall be limited to listed companies (including companies listed abroad whose place of registration is in the PRC) and unlisted public companies.

（八）发行人范围。公开发行优先股的发行人限于证监会规定的上市公司，非公开发行优先股的发行人限于上市公司（含注册地在境内的境外上市公司）和非上市公众公司。

(9) Offering conditions: the outstanding preference shares of a company may not exceed 50% of its total number of common shares and the proceeds raised may not exceed 50% of the net assets before the offering. Preference shares that have been bought back or converted shall not be counted. The provisions of the Securities Law shall apply to the other conditions for the public offering of preference shares by a company and the private placement of preference shares by a listed company. The conditions for the private placement of preference shares by an unlisted public company shall be specified separately by the CSRC.

（九）发行条件。公司已发行的优先股不得超过公司普通股股份总数的百分之五十，且筹资金额不得超过发行前净资产的百分之五十，已回购、转换的优先股不纳入计算。公司公开发行优先股以及上市公司非公开发行优先股的其他条件适用证券法的规定。非上市公众公司非公开发行优先股的条件由证监会另行规定。

(10) Public offering: a company that publicly offers preference shares shall specify the following matters in its articles of association: (1) that it has adopted a fixed dividend rate; (2) where it has after-tax distributable profit, it must distribute dividends to the holders of preference shares; (3) the shortfall when it is unable to pay dividends in full to the holders of preference shares shall be cumulated to the following financial year; and (4) once holders of preference shares have been distributed dividends at the specified dividend rate, they do not participate in the distribution of the remaining profit together with the holders of common shares. Where a commercial bank offers preference shares to top up its capital, it may provide otherwise in respect of Items (2) and (3).

（十）公开发行。公司公开发行优先股的，应当在公司章程中规定以下事项：（1）采取固定股息率；（2）在有可分配税后利润的情况下必须向优先股股东分配股息；（3）未向优先股股东足额派发股息的差额部分应当累积到下一会计年度；（4）优先股股东按照约定的股息率分配股息后，不再同普通股股东一起参加剩余利润分配。商业银行发行优先股补充资本的，可就第（2）项和第（3）项事项另行规定。

(11) Trading, transfer, registration and deposit: preference shares shall be traded or transferred on a stock exchange, the National Equities Exchange and Quotations or other securities trading venue approved by the State Council. Preference shares shall be centrally registered and deposited with the China Securities Depository and Clearing Corporation Limited. The investor suitability criteria at the preference shares trading or transfer stage shall be identical to those at the offering stage.

（十一）交易转让及登记存管。优先股应当在证券交易所、全国中小企业股份转让系统或者在国务院批准的其他证券交易场所交易或转让。优先股应当在中国证券登记结算公司集中登记存管。优先股交易或转让环节的投资者适当性标准应当与发行环节一致。

(12) Information disclosure: in the offer documents, the company shall describe in detail the rights and obligations of holders of preference shares, and fully disclose the risks. Additionally, it shall truthfully, accurately, completely, fairly and in a timely manner disclose or provide information in accordance with provisions, and may not make false records, misleading statements or material omissions.

（十二）信息披露。公司应当在发行文件中详尽说明优先股股东的权利义务，充分揭示风险。同时，应按规定真实、准确、完整、及时、公平地披露或者提供信息，不得有虚假记载、误导性陈述或重大遗漏。

(13) Company acquisition: preference shares may serve as a means of payment in an acquisition or restructuring. The takeover offer for a listed company shall apply to all of the shareholders of the target company, but different takeover conditions may be proposed to the holders of preference shares and to the holders of common shares. When calculating the percentage of the outstanding shares of the listed company held by the acquirer pursuant to Article 86 of the Securities Law and when making the calculation for the triggering of the takeover offer obligation pursuant to Articles 88 and 96 of the Securities Law, the preference shares without restored voting rights shall not be counted as part of the number of shares held or the total share capital.

（十三）公司收购。优先股可以作为并购重组支付手段。上市公司收购要约适用于被收购公司的所有股东，但可以针对优先股股东和普通股股东提出不同的收购条件。根据证券法第八十六条计算收购人持有上市公司已发行股份比例，以及根据证券法第八十八条和第九十六条计算触发要约收购义务时，表决权未恢复的优先股不计入持股数额和股本总额。

(14) Calculations relating to the number of shares held: when the number of shares held is calculated in connection with the following matters, only common shares and preference shares with restored voting rights shall be counted: (1) determining the list of the 10 shareholders with the largest holdings of the company's shares and the number of shares they hold pursuant to Articles 54 and 66 of the Securities Law; and (2) determining the shareholders that hold at least 5% of the shares of the company pursuant to Articles 47, 67 and 74 of the Securities Law.

（十四）与持股数额相关的计算。以下事项计算持股数额时，仅计算普通股和表决权恢复的优先股：（1）根据证券法第五十四条和第六十六条，认定持有公司股份最多的前十名股东的名单和持股数额；（2）根据证券法第四十七条、第六十七条和第七十四条，认定持有公司百分之五以上股份的股东。

3. Organisation administration and supporting policies

三、组织管理和配套政策

(15) Strengthening of organisation administration: the CSRC shall strengthen its coordination and cooperation with relevant departments, and arrange for the launching of the work on the pilot project for preference shares in an active and sound manner. The CSRC shall formulate and issue specific provisions for the pilot project for preference shares in accordance with the Company Law, Securities Law and these Guiding Opinions and guide securities self-regulation organisations in improving relevant business rules.

（十五）加强组织管理。证监会应加强与有关部门的协调配合，积极稳妥地组织开展优先股试点工作。证监会应当根据公司法、证券法和本指导意见，制定并发布优先股试点的具体规定，指导证券自律组织完善相关业务规则。

The CSRC shall strengthen its market regulation, procure the earnest performance of information disclosure obligations by companies, procure the acting in good faith and with due diligence of intermediary firms, investigate and deal with violations of laws and regulations in accordance with the law and duly protect the lawful rights and interests of investors.

证监会应当加强市场监管，督促公司认真履行信息披露义务，督促中介机构诚实守信、勤勉尽责，依法查处违法违规行为，切实保护投资者合法权益。

(16) Improvement of supporting policies: accounting treatment and financial reports relating to preference shares shall comply with the enterprise accounting guidelines and other related accounting standards issued by the Ministry of Finance. The dividends, extra dividends and other such investment benefits obtained by an enterprise from an investment in preference shares may, provided that they satisfy the conditions specified in tax laws, be treated as tax exempt income for enterprise income tax. Investments in preference shares by the National Social Security Fund and enterprise annuities shall not be subject to the current restrictions on percentages that can be invested in securities products, and the specific policies therefor will be formulated by the relevant competent department of the State Council. In the administration of access to industries by foreign investors, the percentage of preference shares and common shares held by a foreign investor shall be calculated together. Other policy matters that need to be formulated complementarily in the course of the pilot project shall be proposed by the CSRC based on the success of the roll out of the pilot project and handled in concert with relevant departments. Major matters shall be reported to the State Council.

clp reference:3710/13.11.30 prc reference:国发〔2013〕46号 issued:2013-11-30

(Issued by the State Council on November 30 2013.)

（十六）完善配套政策。优先股相关会计处理和财务报告，应当遵循财政部发布的企业会计准则及其他相关会计标准。企业投资优先股获得的股息、红利等投资收益，符合税法规定条件的，可以作为企业所得税免税收入。全国社会保障基金、企业年金投资优先股的比例不受现行证券品种投资比例的限制，具体政策由国务院主管部门制定。外资行业准入管理中外资持股比例优先股与普通股合并计算。试点中需要配套制定的其他政策事项，由证监会根据试点进展情况提出，商有关部门办理，重大事项报告国务院。

Guo Fa [2013] No.46

People's governments of the provinces, autonomous regions and municipalities directly under the central government, and ministries, commissions and organisations directly under the State Council:

With a view to thoroughly implementing the spirit of the 18th National Congress of the Communist Party of China and the Third Plenum of the 18th Central Committee of the Communist Party of China, intensifying the reform of the financial system and supporting the development of the real economy, the State Council has decided, in accordance with relevant provisions of the Company Law and the Securities Law, to launch the pilot project for preference shares. The launching of the pilot project for preference shares will be conducive to further intensifying the reform of the enterprise share system, providing issuers with a flexible direct financing instrument, optimising the financial structure of enterprises and promoting enterprise consolidation and restructuring; and will be conducive to increasing the number of securities products available, providing investors with diversified investment channels, increasing the ratio of direct financing and promoting the stable development of the capital markets. With a view to launching the pilot project for preference shares in a sound and orderly manner, we hereby set forth the following guiding opinions: