Raising the Bar for Securities and Shareholders
提高对证券、股东的要求
February 24, 2018 | BY
Susan MokRongsheng Zhang and Xiangyang Yi of Jingtian & Gongcheng provide an overview of the CSRC's regulatory agenda, the Mainland-Hong Kong stock and bond connects, the tightened block trade and backdoor listing curbs, and risk controls for fund managers 竞天公诚律师事务所的张荣胜律师和易湘洋律师综观证监会的监管政策、沪深港通和债券通、大宗交易的收紧、借壳上市的遏制以及基金经理的风险管理
1. What have been some of the key legislative changes affecting China's capital markets in the past 12 months?
The China Securities Regulatory Commission (CSRC) has issued and revised numerous rules and regulations, as well as regulatory documents, over the past 12 months that have impacted the capital markets. These include:
- the revised Measures for the Administration of Material Asset Restructurings by Listed Companies, promulgated and implemented in September 2016, which redefine the criteria for what comprises a “backdoor listing” transaction, greatly increasing the difficulty of using relevant arrangements to bypass backdoor listings. They also curb market phenomenon such as “speculation in shells”, for instance, by outlining the negative conditions of “shell companies” and abolishing complementary backdoor listing financing;
- the amended Implementing Rules for the Private Offering of Shares by Listed Companies, promulgated and implemented in February 2017, which set further restrictions on the pricing reference date for private offerings, the scale of the share capital offered, and financing intervals, aimed at preventing listed companies from taking advantage of private placements and excessive financing; and
- the Several Provisions on the Reduction of Their Shareholdings by the Shareholders, Directors, Supervisors and Senior Management Personnel of Listed Companies, promulgated in May 2017, which place a number of restrictions on shareholding reductions by parties including the controlling shareholder, major shareholders, and pre-IPO shareholders, as well as the director, supervisor, and senior management shareholders of listed companies.
2. How does the Mainland-Hong Kong Bond Connect benefit investors, following the Shanghai- and Shenzhen-Hong Kong Stock Connects?
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