Chapter III Implementation Measures for Transferring Some State-owned Shares in the Domestic Securities Market to Enrich the National Social Security Fund

Article 11 After the share-trading reform, the procedures for the transfer of shares of joint stock limited companies that have made initial public offering and listing before the promulgation of these Measures are as follows:

1. The state-owned assets supervision and administration institution preliminarily verifies the identity of the state-owned shareholders and the number of transferred shares of the transferring company according to the existing data, and the Ministry of Finance, the State Council State-owned Assets Supervision and Administration Commission, China Securities Regulatory Commission (hereinafter referred to as CSRC) and Social Security Fund jointly announce the names of listed companies, state-owned shareholders and the number of transferred shares to the public. The shares to be transferred shall be frozen as of the date of announcement.

2. If the state-owned shareholders have doubts about the announcement of transfer, they shall give feedback to the state-owned assets supervision and administration institution within 30 working days after the announcement, and the state-owned assets supervision and administration institution shall re-approve.

3. To fulfill the obligation of share transfer, the state-owned assets supervision and administration institution shall issue a notice of transfer of state-owned shares to China Securities Depository and Clearing Co., Ltd. (hereinafter referred to as China Clearing Company), and send a copy to the Social Security Fund. China Clearing Company shall, within 15 working days after receiving the notice of transfer of state-owned shares, register the change of the shares that should be transferred by shareholders of various countries in the social security fund transfer stock account.

To fulfill the obligation of transferring funds, the state-owned shareholders should be turned over to the central treasury in full and on time, and go through the procedures of unfreezing shares with the total contribution (copy) to China Clearing Company.

Article 12 After the promulgation of these Measures, the procedures for the transfer of a joint stock limited company that has made an initial public offering are as follows:

1. The largest state-owned shares of a joint stock limited company that has been publicly listed for the first time apply to the state-owned assets supervision and administration institution to confirm the identity of state-owned shareholders and the number of shares transferred. Upon confirmation, the state-owned assets supervision and administration institution shall issue a reply on the transfer of state-owned shares, and send a copy to the Social Security Fund and China Clearing Company. The reply to the transfer of state-owned shares should require state-owned shares to make a commitment to the social security fund, and specify the number of shares transferred or the amount of funds paid by shareholders in various countries. This reply should be used as a necessary document for a joint stock limited company to apply for initial public offering and listing.

2. Where the obligation of transferring shares is fulfilled by transferring shares, China Clearing Company shall register the changes of shares to be transferred by shareholders of various countries in the account of transferring shares of social security fund after receiving the approval of transferring state-owned shares and before the initial public offering. For those who fulfill the obligation to transfer funds, the state-owned shareholders shall turn them over to the central treasury in full and on time in accordance with the requirements of the approval of the transfer of state-owned shares.

3. State-owned shareholders shall, within 30 working days after the completion of the transfer of state-owned shares, report the transfer of shares, or the performance of transfer obligations in other ways, and the total payment book (copy) and other relevant documents to the state-owned assets supervision and administration institution for the record, and send a copy to the Ministry of Finance and the social security fund.