In the stock market, the reduction of major shareholders is one of the hot issues that many investors pay attention to. In most cases, the reduction of major shareholders will also have a certain impact on the stock. So, what rules should major shareholders follow to reduce their holdings? As shown in the figure below.

What are the rules for major shareholders to reduce their holdings?

1 Provisions on time and proportion of reduction:

2. Every 5% reduction in the pre-disclosure requirements for major shareholders includes:

Circumstances that prohibit the reduction of holdings

1 Under any of the following circumstances, the major shareholder of a listed company may not reduce its shareholding:

1. The listed company or major shareholder is suspected of committing securities and futures crimes, is being investigated by the China Securities Regulatory Commission or is being investigated by the judicial authorities, and it is less than 6 months after the administrative punishment decision or criminal judgment is made;

2. The major shareholder has been publicly condemned by the stock exchange for violating the rules of the stock exchange for less than 3 months;

3. Other circumstances stipulated by China Securities Regulatory Commission.

2 If a listed company meets the warning standard of delisting risk under any of the following circumstances, its controlling shareholder (only applicable to the controlling shareholder among the major shareholders) shall not reduce its shares from the date when the relevant decision is made until the company's shares are terminated or resumed:

1. The listed company was given administrative punishment by China Securities Regulatory Commission for fraudulent issuance or illegal disclosure of major information;

2. The listed company is transferred to the public security organ according to law for the crime of fraudulent issuance or for the crime of illegally disclosing or not disclosing important information;

3. Other major illegal delisting situations. If a listed company has no controlling shareholder or actual controller, its largest shareholder and the actual controller of the largest shareholder shall abide by the provisions of the preceding paragraph.

Shares issued by major shareholders before the company's public offering shall not be transferred within 1 year from the date of listing and trading of the company's shares. If it is the controlling shareholder or actual controller, it should also promise at the time of initial public offering:

Within 36 months from the date of listing, it will not transfer or entrust others to manage the shares it directly or indirectly holds that have been issued by the issuer before the initial public offering of shares, nor will it be repurchased by the issuer (with commitment exemption).