The regulatory authorities have further improved the share reduction system and recently released new management norms. These rules aim to strictly regulate the share reduction behavior of major shareholders, while effectively preventing the occurrence of disguised share reduction.

The important documents released this time include the "Interim Measures for the Management of Share Reduction by Shareholders of Listed Companies" and the "Management Rules for the Shares Held by Directors, Supervisors, and Senior Managers of Listed Companies and Their Changes." At the same time, relevant self-disciplinary supervision guidelines have also been adjusted and strengthened guidance on share reduction.

The revised new rules aim to integrate and optimize the rule system, with a focus on strict regulation of major shareholders. Specifically, the rules clarify the management standards for the identity of major shareholders and consider the shares they hold in different accounts and through specific trading methods. In addition, major shareholders and their concert parties must strictly comply with relevant regulations when reducing their shares, especially when the company or individual is involved in illegal activities, share reduction is not allowed.

Furthermore, the reduction behavior of controlling shareholders and actual controllers under specific circumstances has been clarified, such as when the company is below its issue price, below net asset value, or when dividends do not meet the standards, all of which have been integrated into the share reduction regulations.

To effectively prevent various methods of circuitous share reduction, the new rules are clear in three respects: first, by integrating the reduction rules under various circumstances, such as reduction by major shareholders in the event of divorce or corporate separation, to prevent circumventing the rules by changing identity; second, it prevents circumvention through trading methods, ensuring related share changes comply with legal enforcement, share pledges, and margin financing; finally, the requirements for agreement transfers are implemented, and the applicable regulations are specified.

These new rules have been officially implemented from the date of issuance, aiming to guide market participants to carry out share reduction in a normative, rational, and orderly manner, to protect the interests of investors and market stability.

The new rules reiterate that it is strictly forbidden for major shareholders, directors, supervisors, and senior managers of the company to sell their company's shares through short selling or to participate in derivative transactions based on their company's stock.

At the same time, clear guidance has been given to shareholders who reduce their company's shares through subscription or purchase of Exchange-Traded Funds (ETFs), stipulating that such behavior should refer to the share reduction rules applicable to concentrated bidding transactions.

In addition, the new rule has further optimized the transfer process in inquiry-based transfers and allocation transactions, to improve the efficiency and transparency of these financial business operations.