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CSRC Revises the Administrative Measures for the Takeover of Listed Companies

On February 14, 2012, China Securities Regulatory Commission released the Decisions on Amendments (the "CSRC") to Article 62 and Article 63 of Administrative Measures for the Takeover of Listed Companies (the "Decisions"), which shall come into force on March 15, 2012.

The amendments made under the Decisions mainly concern the requirements for information disclosure by a shareholder holding more than 50% of shares when he or she increases holdings, and further defining the vague provisions under the Administrative Measures concerning information disclosure when the shareholder holds more than 50% of shares increase his or her holdings for more than 2% of the shares.

After the Decisions are released for comments, totally 12 e-mails are received and 1 advice is made by telephone, all of which support the amendments. In these 12 e-mails, five emails provide advice and 7 emails ask questions. Concerning the advice on further strengthening the information disclosure for holdings of shares by centralized competitive bidding, CSRC adopts such advice and adds to the last paragraph of Article 2 of the Decisions the requirements for the disclosure of each increase of 1% of shares on the following day and the temporary increase of holdings for each increase of 2% on the same day or the next day (the day of disclosure). It also defines the suspended increase of holdings by the shareholder holding more than 50% of shares for each free increase of holdings more than 2% on the same day or the next day (the day of disclosure).


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