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Shenzhen Stock Exchange and China Securities Depository and Clearing Corporation Limited jointly promulgated “Guidance on cash option business for listed companies” with an aim to regulate cash option business of listed companies.
The Guidance regulated the cash option business and the applicable modes of declaration and also stipulated that the cash option declaration should be done within not less than 5 trading days and whether the company should suspend its stock trading, the required materials and information disclosure.
As more and more measures are applied in the asset restructure and the activeness of the market, cash option business has become one of the important measures to guarantee the rights and interests of holders with small sums of shares.
Shenzhen Stock Exchange also unveiled three memorandums to regulate related business such as information disclosure of senior officials and conversion of non-listed foreign shares to tradable B shares.
Memorandum No. 10 noted the time limited and declaring mode for senior management of listed companies. As required, senior officials and officials who take duel positions in listed companies should sign written promises
Memorandum No.11 suggests that listed companies with B shares could submit the applications for conversion of non-listed foreign shares to tradable B shares as required in the memorandum without reporting to CSRC for review.
Memorandum No. 12 specified that holders of restricted shares should not be involved in any activities such as embezzlement or illegitimate guarantee by companies and other activities such as information disclosure and etc.
Shenzhen Stock Exchange also amended Memorandum No. 10 and No.16 to announce rules on repay of replaced shares and restricted shares.
