Rules on the Transfer of Listed Company Shares of State-owned Shareholders
July 7th, 2007Today Chinese media report that the CSRC has promulgated three regulations on the transfer of shares in listed companies by state shareholders (guo you gudong). The regulations are effective as of July 1, though they are reported in the news today (July 6).
Potentially, this is another piece of the puzzle for China’s creeping privatization of listed firms. The share reclassification process has now been completed (for all but a few laggards), so all shares in listed firms are now theoretically tradeable, in accordance with the terms of the reclassification agreement particular to each company.
But what approvals must a state actor get to transfer its former legal person or state-owned shares, now that they are theoretically fungible with other listed shares? What does a buyer need to see to know the shares have been legally transferred? These rules let us know.