Ministry of Commerce, Decision on Amending the《Measures for the Administration of Strategic Investments in Listed Companies by Foreign Investors》(Draft for Comments)

Issued: July 30, 2018

Main contents: A new Article 7 is proposed to be added: “The A shares of a listed company obtained by a foreign investor through a strategic investment may not be transferred for 12 months, 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.”

Article 11 is proposed to be amended as: “If a foreign investor continues, by means such as transfer by agreement, targeted offering of new shares by the listed company or takeover offer to invest in a listed company in which it already holds shares and the change in its shareholding percentage exceeds 5% in the aggregate or a change in the controlling or relative controlling position occurs, it shall carry out record filing or examination and approval procedures in accordance with Article 3 hereof.”