Shang Zheng Fa  No. 24 Document
All Listed Companies,
Recently, the China Securities Regulatory Commission (CSRC) has amended and released the "Rules on Shareholding Lessening by Shareholders, Directors, Supervisors and Senior Management Members of Listed Companies" (CSRC Announcement  No. 9 Document). According to the rules, the Shanghai Stock Exchange (SSE) has formulated the "Detailed Implementation Rules on Shareholding Lessening by Shareholders, Directors, Supervisors and Senior Management Members of SSE-listed Companies" (the "Detailed Rules" for short, see the Attachment). Upon approval of the CSRC, the Detailed Rules is hereby published, and comes into effect from its release date. Relevant issues are hereby notified as follows:
1. All listed companies are expected to strengthen publicity and training for the Detailed Rules, and remind their relevant shareholders, directors, supervisors and senior management members of strictly abiding by the Detailed Rules. It should be specially noted that upon the release of the Detailed Rules, any controlling shareholder, shareholder with over 5% of shares in the company, director, supervisor and senior management member of the listed company planning to lessen shareholding through auction trading should report the shareholding lessening plan to the SSE 15 trading days before the first sale of shares, as well as make an announcement.
2. The SSE will handle the business of shareholding lessening by means of block trading according to the Detailed Rules for shareholders in accordance with relevant special arrangements till completion of the joint test of technology system by securities companies and the SSE.
3. The SSE will regulate the behaviors of shareholding lessening by shareholders, directors, supervisors and senior management members. Once rule-breaking behaviors are found out, the SSE will take regulatory measures or exert disciplinary punishment according to its business rules. Serious rule-breaking behaviors will be reported to the CSRC and be subject to its investigation and punishment.
4. If you have any questions in the implementation of the Detailed Rules, please consult the SSE in written form.
Shanghai Stock Exchange
May 27, 2017