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The Reduction of Shareholdings by Major Shareholders and Policy Options on Market Supervision（No.9, 2018）
By Sun Fei, Research Institute of Finance, DRC
Research Report, No.9, 2018 (Total 5284) 2018-1-11
Abstract: In recent years, the reduction of shareholdings by major shareholders has become a big problem affecting the steady performance of China’s stock market and is prone to cause panic, which is contrary to the sound development of the capital market and real economy. The “Regulations on Shareholdings Reduction by Major Shareholders, Directors, Supervisors and Senior Managers in Listed Companies” and the “Regulations on Shareholdings Reduction by Shareholders, Directors, Supervisors and Senior Managers in Listed Companies” issued respectively in January 2016 and May 2017 have played a positive role in checking the disordered reduction of shareholdings by major shareholders and protecting the interests of minority investors, but the problem has not been solved root and branch. In face of the various tricks to avert supervision relating to shareholdings reduction, the government needs to make further systematic adjustment and take more targeted measures. In order to fend off financial risks and boost the real economic growth, the relevant departments of the government need to, on the basis of reinforcing the supervision outcomes, combine the major shareholders’ shareholdings reduction with the design of corporate IPO and related systems, strengthen information disclosure and capital flow monitoring, reinforce the penalty of violations, and establish a coordinated long-term mechanism to regulate the major shareholders’ shareholdings reduction.
Key words: major shareholders, shareholdings reduction, supervision
