China Securities Regulatory Commission, Announcement on Arrangements Relevant to the Domestic Listing of Innovative Pilot Red-Chip Enterprises

(2)        a market valuation of at least Rmb20 billion and having its own self-developed and world leading technology, relatively strong technological innovation capabilities and occupying a relatively advantageous position in the competition in its industry (Article 1).

Where a red-chip enterprise with a variable interest entity structure applies to offer shares, the China Securities Regulatory Commission (CSRC) will, after accepting the relevant application, seek the opinions of the State Council's department in charge of the industry in which the red-chip enterprise's domestic entity actually carries on business and the National Development and Reform Commission and the Ministry of Commerce, and handle such application in accordance with laws and regulations (Article 2).

A red-chip enterprise not listed offshore that applies to list domestically shall, before filing, produce a plan for matters that involve the use of foreign exchange, such as reduction of the holding of existing shares, and submit the same to the CSRC, which shall seek the opinion of the relevant competent departments (Article 3).