Penalty measures for major shareholders to reduce their holdings in violation of regulations: if losses are caused to the company or other shareholders, they shall be liable for compensation according to law. Where a company evades its debts and seriously damages the interests of its creditors, it shall be jointly and severally liable for its debts. Shareholders of the company shall abide by laws, administrative regulations and the articles of association, exercise their rights according to law, and shall not abuse their rights to harm the interests of the company or other shareholders; The company's independent legal person status and the limited liability of shareholders shall not be abused to harm the interests of the company's creditors. Shareholders of a company who abuse their rights and cause losses to the company or other shareholders shall be liable for compensation according to law. Shareholders of a company who abuse the independent status of a company as a legal person and the limited liability of shareholders to evade debts and seriously damage the interests of creditors of the company shall be jointly and severally liable for the debts of the company.

Legal basis: some provisions on the reduction of shares by shareholders and directors of listed companies

Article 6 Under any of the following circumstances, the major shareholder of a listed company shall not reduce its shares: (1) The listed company or major shareholder has been placed on file for investigation by the China Securities Regulatory Commission or the judicial organ for suspected securities and futures crimes, and it has not been more than six months since the decision of administrative punishment or criminal judgment was made. (2) The major shareholder has been publicly condemned by the stock exchange for violating the rules of the stock exchange for less than three months. (3) Other circumstances stipulated by the China Securities Regulatory Commission.

Article 7 In any of the following circumstances, Dong of a listed company shall not reduce his shares: (1) Dong has been placed on file for investigation by the China Securities Regulatory Commission or the judicial organ for suspected securities and futures crimes, and it has not been more than six months since the decision of administrative punishment or criminal judgment was made. (two) Dong has been publicly condemned by the stock exchange for violating the rules of the stock exchange for less than three months. (3) Other circumstances stipulated by the China Securities Regulatory Commission.