Main contents of the transfer of state-owned shares

With the approval of the State Council, the Ministry of Finance, the State-owned Assets Supervision and Administration Commission, the China Securities Regulatory Commission and the Social Security Fund issued the Implementation Measures for Transferring Part of State-owned Shares in the Domestic Securities Market to Enrich the National Social Security Fund on June 9, 2009. These Measures shall come into force as of the date of promulgation.

At the same time, the "Measures" pointed out that after the suspension of the share-trading reform and before the promulgation of the "Measures", the original state-owned shareholders confirmed by the state-owned assets supervision and administration institution shall bear the transfer obligation of the joint stock limited company that is publicly listed for the first time. Confirmed state-owned shareholders who have transferred their shares before fulfilling their transfer obligations must replace the transfer of state-owned shares by paying funds in accordance with the transfer obligations.

The Measures clarify that the state-owned shareholders confirmed by the state-owned assets supervision and administration institution have the obligation to transfer the shares of a joint stock limited company that has been publicly listed for the first time after the promulgation of the Measures. For a state-owned shareholder with mixed ownership, the state-owned investor of the state-owned shareholder shall multiply its shareholding ratio by the amount of rights and interests that the state-owned shareholder should transfer, and perform the obligation of transfer. The specific ways include: after obtaining the unanimous opinion of the investors or shareholders of state-owned shareholders, directly transfer state-owned shares, and the state-owned investors of state-owned shareholders will compensate the non-state-owned investors accordingly; Or the state-owned investors of state-owned shareholders will turn over the dividends or their own funds to the central treasury in one lump sum or in installments.

For those who meet the conditions for direct transfer of shares, but need to maintain the state-owned holding position according to the relevant provisions of the state, with the approval of the state-owned assets supervision and administration institution, state-owned shareholders are allowed to perform their transfer obligations in ways including but not limited to dividends or their own funds, and at the same time ensure that the funds are turned over to the central treasury in full and on time.