If the reduction ratio reaches 5%, it shall be announced within three trading days, and no trading shall be conducted within two days after the announcement; If a major shareholder reduces its shareholding by more than 5% and its shareholding ratio is less than 5%, it shall make an announcement within two trading days; If the controlling shareholder of the company changes its controlling shareholder or actual controller due to the reduction of its shares, it shall announce the report on the change of equity.
How do shareholders of listed companies reduce their holdings?
The methods for listed companies to reduce their holdings are as follows:
1. Determination of the reduction ratio, the total number of shares, that is, the denominator in the reduction ratio, refers to the sum of the number of A shares and B shares issued by listed companies and the number of overseas listed shares, excluding preferred shares, and the reduction number, that is, the numerator in the reduction ratio, refers to the number of A shares reduced by shareholders, excluding preferred shares;
2. Consolidated calculation of concerted parties, that is, the number of shares held by multiple shareholders who constitute concerted parties shall be consolidated and calculated, and the provisions on reduction ratio and information disclosure shall apply as a whole;
3. One person and many households are combined into one. If a single shareholder holds shares through multiple securities accounts, the shares of the accounts with the same account name and certificate number shall be consolidated and calculated. Shareholders reduce their shares through credit accounts and merge with their ordinary securities accounts, and the number of shares that can be reduced in each account is distributed in proportion to the number of shares in each account.
As can be seen from the above, major shareholders holding more than 5% of shares should make an announcement no matter how much they reduce their holdings, because their reduction will have a significant impact on the stock price. When the shareholding ratio is less than 5%, there is no need to announce further reduction.
Legal basis:
Company Law of the People's Republic of China
Article 103
Shareholders attending the shareholders' meeting shall have one vote for each share they hold. However, the shares of the company held by the company have no voting rights. The resolution of the shareholders' meeting must be passed by more than half of the voting rights held by the shareholders present at the meeting. However, the resolutions of the shareholders' meeting to amend the Articles of Association, increase or decrease the registered capital, and the resolutions of the company's merger, division, dissolution or change of corporate form must be adopted by more than two thirds of the voting rights held by the shareholders present at the meeting.
Article 177
When a company needs to reduce its registered capital, it must prepare a balance sheet and a list of assets. The company shall notify the creditors within ten days from the date of making the resolution to reduce the registered capital, and make an announcement in the newspaper within thirty days. Creditors have the right to require the company to pay off debts or provide corresponding guarantees within 30 days from the date of receiving the notice, or within 45 days from the date of announcement if they have not received the notice.