On November 14, 2014, the China Securities Regulatory Commission (hereinafter, the "CSRC") promulgated the Provisions on the Recordation of the Placement of Shares to Existing Domestic Shareholders by Hong Kong-Listed Companies under the Shanghai-Hong Kong Stock Connect (CSRC Announcement  No. 48) (hereinafter, the "Provisions"), which came into effect on the day of their promulgation. The Provisions are highlighted as follows:
- Placement of shares to existing domestic shareholders by Kong Kong-listed companies under the Shanghai-Hong Kong Stock Connect shall be recorded with the CSRC.
- After the application to place shares by a Hong Kong-listed company receives the approval of the Hong Kong Stock Exchange, the application materials and approval documents shall be submitted to the CSRC. The CSRC will conduct supervision based on the approval opinions and conclusions of the Hong Kong authorities.
- When submitting recordation materials, a Hong Kong-listed company shall provide the following general descriptions regarding the effects of the submission materials' texts along with the following commitments: (1) The recordation documents are the final texts reviewed by the Hong Kong Stock Exchange and are completely consistent with the contents of the submissions to the Hong Kong Stock Exchange; (2) to safeguard the lawful rights and interests of the shareholders, the company is committed to treat domestic investors fairly with respect to the placement of shares to existing domestic shareholders; and (3) the company is committed to file a timely report with the CSRC in the event of any major incident after the day the recordation materials are submitted and before the share placement is concluded.