1. Rules for a pilot program allowing companies to issue preferred shares:

Three types of listed companies can publicly issue preferred shares: Shanghai Stock Exchange's 50 index members (the largest by market capitalization); companies planning to acquire other listed companies by issuing preferred shares for payment; companies buying back common stock that plan to decrease their registered capital by issuing preferred shares as payment.

Other domestically listed companies can conduct private placements of preferred shares through stock exchanges, as long as they comply with Chinese laws.