Learn Chinese Online:

BIZCHINA / Finance

Securities Law of the People's Republic of China (revised in 2005)

Updated: 2006-04-18 08:56

Article 97 Upon the expiration of a term for acquisition, where the share
distribution of an target company fails to fulfill the requirements of
listing, the listing of stocks of the said listed company shall be
terminated by the stock exchange according to law. The shareholders that
still hold the shares of the target company have the right to sell their
shares pursuant to the equal terms as stipulated in the relevant tender
offer. The purchaser shall make the purchase. When an acquisition is
concluded, if a target company fails to meet the requirements of being a
stock-limited company any more, its form of enterprise shall be altered
according to law.

Article 98 In an acquisition of a listed company, the stocks of the
target company as held by a purchaser may not be transferred within 12
months after the acquisition is concluded.

Article 99 When an acquisition is concluded, if the purchaser merges with
the target company by dissolving the target company, the original shares
of the company as dissolved shall be changed by the purchaser according
to law.

Article 100 Where an acquisition is concluded, a purchaser shall, within
15 days, report the acquisition to the securities regulatory authority
under the State Council and the stock exchange as well as announce it.

Article 101 The purchase of the shares of a listed company as held by an
organization that has been authorized by the state for investment shall
be subject to the approval of the relevant administrative departments
according to the provisions of the State Council. The securities
regulatory authority under the State Council shall formulate the specific
measures for acquisition of listed companies in light of the principles
of the present Law.

Chapter V Stock Exchanges

Article 102 For the purpose of the present Law, the term "stock exchange"
refers to a legal person that provides the relevant place and facilities
for concentrated securities trading, organizes and supervises the
securities trading and applies a self-regulating administration. The
establishment and dissolution of a stock exchange shall be subject to the
decision of the State Council.

Article 103 A constitution shall be formulated for the establishment of a
stock exchange. The formulation and revision of the constitution of a
stock exchange shall be subject to the approval of the securities
regulatory authority under the State Council.

Article 104 The words "stock exchange" shall be indicated in the name of
a stock exchange. No other entity or individual may use the name of
"stock exchange" or an identical name.

Article 105 The income that is at the discretion of a stock exchange, as
generated from various commissions, shall first be used to guarantee the
normal operation of the place and facilities of the stock exchange as
well as the gradual improvement thereof. The gains as accumulated by a
stock exchange that adopts a membership system shall belong to its
members. The rights and interests of a stock exchange shall be jointly
shared by its members. No accumulated gains of a stock exchange may be
distributed to any member within the holding term.

Article 106 A stock exchange shall have a council.

Article 107 There shall be a general manager in a stock exchange, who
shall be subject to the appointment and dismissal of the securities
regulatory authority under the State Council.

Article 108 Anyone, under the circumstance as prescribed in Article 147
of the Corporation Law of the People's Republic of China or under any of
the following circumstances, may not assume the post of person-in-charge
of a stock exchange:
(1) Where a person-in-charge of a stock exchange or securities
registration and clearing institution or any director, supervisor or
senior manager of a securities company who has been removed from his post
for his irregularity or disciplinary breach and if it has been within 5
years as of the day when he is removed from his post; or
(2) Where a professional of a law firm, accounting firm or investment
consulting organization, financial advising organization, credit rating
institution, asset appraisal institution or asset verification
institution who has been disqualified for his irregularity or
disciplinary breach and if it' has been within 5 years as of the day when
he is removed from his post.

Article 109 A practitioner of a stock exchange, securities registration
and clearing institution, securities trading service organization or
securities company or any functionary of the state organ, who has been
dismissed for his irregularity or disciplinary breach, may not be
employed as a practitioner of a stock exchange.

Article 110 Only a member of a stock exchange may enter into a stock
exchange to engage in the centralized trading of securities.

Article 111 An investor shall conclude an entrustment agreement with a
securities company on securities trading, open an account of securities
trading in a securities company and entrust the securities company to
purchase or sell securities on the behalf in writing, by telephone or any
other means.

Article 112 A securities company shall, based on the entrustment of its
investors, declare orders and engage in the centralized trading at a
stock exchange according to the rules of securities trading and shall,
based on trading results, bear the relevant liabilities of settlement and
delivery. A securities registration and clearing institution shall, on
the basis of trading results and according to the rules of settlement and
delivery, conduct settlement and delivery of securities and capital with
the relevant securities company and handle the formalities of transfer
registration of securities for clients of the relevant securities company.

Article 113 A stock exchange shall guarantee a fair centralized trading,
announce up-to-the-minute quotations of securities trading, formulate the
quotation tables of the securities market on the basis of trading days as
well as announce it. Without permission of a stock exchange, no entity or
individual may announce any up-to-the-minute quotations of securities
trading.

Article 114 Where any normal trading of securities is disturbed by an
emergency, a stock exchange may take the measures of a technical
suspension of trading. In the event of an emergency of force majeure or
with a view to preserving the normal order of securities trading, a stock
exchange may decide a temporary speed bump. Where a stock exchange adopts
the measure of a technical suspension of trading or decides a temporary
speed bump, it shall report it to the securities regulatory authority
under the State Council in a timely manner.

Page: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

(For more biz stories, please visit Industry Updates)

Learn Chinese Online

Monday, December 17, 2007

Sponsor AD

Good Sites

Labels

Blog Archive