Walter Hutchens’ Blog

The CSRC has enacted a new investor protection regulation, Xinhua reported late last night.

The final text of the rule should be available shortly, but it doesn’t seem to be posted anywhere yet Sina currently has a link that purports to be to the new reg, but actually it brings up the draft the CSRC posted for comment back in late September, not the final rule. The CSRC website is still devoid of reference to the new rule.

The final rule reportedly retains the right of holders of listed shares to vote as a group on certain major matters (and requires that 1/2 of public shareholders approve these matters); prohibits issuers that have not paid dividends for three years from publicly issuing new securities; provides for independent directors to be elected by cumulative voting; and urges listed firms to allow for e-voting. Additional regs on some of these specific subjects are expected.

A collection of Chinese reports on the draft reg is here.