CSRC: Plans to expand the types of strategic investors and clarify the minimum shareholding ratio requirements

The China Securities Regulatory Commission (CSRC) has publicly solicited opinions on the "Decision on Amending the Applicable Opinions on Articles 9, 10, 11, 13, 40, 57, and 60 of the 'Administrative Measures for the Registration of Securities Issuance by Listed Companies'—Securities and Futures Legal Application Opinion No. 18" (draft for comments). The solicitation mentions that the CSRC intends to expand the types of strategic investors, clarifying that institutional investors such as the National Social Security Fund, basic pension insurance funds, enterprise (occupational) annuity funds, commercial insurance funds (insurance companies investing their own insurance funds or entrusting related insurance asset management institutions, as well as single investors through related insurance asset management institutions issuing equity investment plans), public funds, and bank wealth management can act as strategic investors, using patient capital as a strategic resource for the strategic investment in listed companies. At the same time, these types of investors will be defined as capital investors in the rules, while other industrial investors will be defined as industrial investors. The CSRC intends to clarify the minimum shareholding ratio requirements, insisting that strategic investors should hold a significant proportion of shares in listed companies, further specifying that the shares subscribed by strategic investors in this instance should generally not be less than 5%, and they can participate in the governance of listed companies based on their shareholding ratio. Risk Warning and Disclaimer The market has risks, and investment should be cautious. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial conditions, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investment based on this is at their own risk.