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CSRC Comprehensively Promotes the Reform of H-Share “Full Circulation”
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Chinese
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Category：Legislative Updates
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Subject：Finance
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Keywords：H-Share “Full Circulation”; CSRC
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Source：Pkulaw
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Publish Date：11-21-2019
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On November 14, 2019, the China Securities Regulatory Commission (CSRC) issued the Guidelines for the Application for the “Full Circulation” of the Domestic Unlisted Shares of H-Share Companies, effective from the date of issuance.
According to the Guidelines, an H-share company refers to a domestic joint stock limited company listed on the Hong Kong Exchanges and Clearing Limited (HKEX). The H-share “Full Circulation” applies to A- shares held by domestic shareholders before overseas listing, A-shares offered additionally within China after overseas listing, and unlisted shares held by foreign shareholders. The aforesaid shares should be listed and traded on the HKEX for the time being.
It is learned that the comprehensive promotion of the H-share “full circulation” sees the following changes: First, good practices are summarized during the period of the pilot program in an effort to develop rules and systems as business guidelines. Second, instead of restrictions placed on a company's scale or industry, in the case that such administrative provisions as the access of foreign investment are met, a company and its shareholders may decide to apply for implementing the “Full Circulation” according to laws and regulations of their own accord. Third, without limits set on the number of companies and the time limit for completion thereof, the reform should be advanced in an orderly manner under the principle that no listed company may carry out such reform until it has met the requirements.
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