China Securities Regulatory Commission, Decision on Amending the Measures for the Administration of Material Asset Restructurings by Listed Companies (Solicitation of Public Comments)

中国证券监督管理委员会关于修改《上市公司重大资产重组管理办法》的决定 (公开征求意见)

September 11, 2019 | BY

Susan Mok

The CSRC is to revise measures to achieve quality restructurings of listed companies

Promulgated: 2019-06-20
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Issued: June 20, 2019

Main contents: Firstly, the Decision proposes to remove the "net profit" indicator from the criteria for determining a restructuring and listing, and supports a listed company relying on an acquisition and restructuring to achieve resource integration and industrial upgrading.

Secondly, it proposes to further shrink the calculation period for the "initial accumulation principle" to 36 months so as to motivate acquirers and their affiliated parties to speed up their injection of quality assets after achieving control of the company.

Thirdly, it promotes the continuous transformation and upgrading of companies on the Growth Enterprise Market and proposes to support the restructuring and listing of assets relating to high and new industries and strategic emerging industries that are in keeping with state strategy on the Growth Enterprise Market.

Fourthly, it proposes the resumption of complementary financing for restructurings and listings, and supports, through multiple channels, listed companies injecting assets to improve their cash flow, achieve synergy and channel private capital toward hi-tech enterprises that have their own innovation capabilities. Furthermore, the amendments will additionally clarify the arrangement for the convergence of the rules for the regulation of the acquisition and restructuring of Science and Technology Innovation Board listed companies and simplify the requirements for disclosure in designated media.

Issued: 2019-06-20

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