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The Shanghai Stock Exchange (SSE) has recently disclosed the information of the promises in the equity division reform made by listed companies and the shareholding lessening by their controlling shareholders and holders of more than 5% shares in the column of "Listed Companies Credit Record" on its website. The shareholding lessening information mainly includes company names and time of the lessening by relevant shareholders, while the reform promise information mainly covers company names, shareholder names, promise content and names of the reform sponsors. The information will be real-timely updated to facilitate investors' browsing and learning new information.
According to statistics, controlling shareholders and those holding more than 5% shares of SSE listed companies have a record of over 300 times' shareholding lessening in total, involving 160 shareholders from 112 listed companies. So far, a total of 773 companies on the SSE have completed the reform, among which 4 have been delisted (Shanghai Port Container Co., Ltd., Shandong Aluminum Industry Co., Ltd., Lanzhou Aluminum Co., Ltd. and Unida Co., Ltd.). The original holders of non-floating shares of the remaining 769 companies put forward more than 2,000 promises, including time extension for sales limit, proposal of dividend distribution and capitalization from capital public reserve, setting up minimum lessening price, arrangement for additional consideration, and promotion of equity incentives, etc.
Under the circumstance of all-floating, shareholding lessening by controlling shareholders of listed companies will have a great impact on stock prices. To maintain the trading order of the market and improve transparency, the SSE strictly supervises shareholding lessening by controlling shareholders. It urges controlling shareholders and holders of more than 5% shares to make announcements immediately once their lessened shares reach 1% of the total issues shares of listed companies. Besides, it gathered and published the announcements on shareholding lessening by controlling shareholders and those holding more than 5% shares, with an aim to help investors track shareholding change of the companies.
The SSE has always been focusing on supervision over fulfillment of listed companies' promises in equity division reform. To guarantee the fulfillment of promises in the reform, it highlights sponsors' continuous supervision responsibility, requiring them to submit regular reports and special opinions on particular problems in the fulfillment of the reform promises. On the other hand, it strictly prevents the risks of violation of the promises. As to some shareholders of listed companies who intend to change their promises, the SSE cooperates with other parties to dissuade them and safeguard investors' anticipation for stability on the securities market. For some responsible persons who breach promises in the reform, the SSE imposes heavier and quicker punishment on them. Under the SSE's powerful supervision and other market parties' surveillance, the reform promises of listed companies are all fulfilled as expected, with good feedback from investors.
In the next stage, the SSE will continuously strengthen supervision over shareholding lessening by controlling shareholders and fulfillment of promises in equity division reform as well as further update and increase information on its website.
