Legislation roundup: Strategic investment, delisting and pharma
August 02, 2018 | BY
Susan MokRequirements for strategic investment in A-share companies are lowered, major violations of the law are specified in the delisting system and MAHs may entrust the sale of pharmaceuticals.
Capital Markets
Ministry of Commerce, Decision on Amending the <Measures for the Administration of Strategic Investments in Listed Companies by Foreign Investors> (Draft for Comments)
The A shares of a listed company obtained by a foreign investor through a strategic investment may not be transferred for 12 months (3 years at the moment), unless otherwise provided in respect of share lockup periods in the Securities Law or by the China Securities Regulatory Commission or the securities exchange, in which case such provisions shall be complied with.
Further reading
China Securities Regulatory Commission, Decision on Amending the <Several Opinions on Reforming, Improving and Strictly Implementing the System for Delisting Listed Companies>
The Decision specifies the fundamental system requirement that where a major violation of the law by a listed company, such as a fraudulent offering, major violation of information disclosure laws or one that involves areas such as national security, public security, ecological security, work safety or public health and safety, is constituted, the securities exchange is required to render in strict accordance with the law a decision to suspend or terminate the listing and trading of the company's stocks.
Further reading
Retail and Wholesaling
China Food and Drug Administration, Official Reply on Matters Relevant to the Production and Distribution of Pharmaceuticals in the Pilot Marketing Authorization Holder Project
A marketing authorization holder may entrust its contracted producer or engage a pharmaceutical operator to sell the pharmaceuticals in its possession. The holder shall audit and evaluate the quality management system of the enterprise it engages, execute a quality agreement therewith and specify the rights, obligations and responsibilities of the parties.
Further reading
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