The Shanghai Stock Exchange (SSE) has recently revised Article 7 of the Guidelines for the Unanimous Increase of Shares by Shareholders of Listed Firms and Their Parties which took effect on 24 September 2008.

According to the new revisions, shareholders are not permitted to increase their shareholding in listed firms during the following periods:

  • the period for disclosing preliminary performance reports or within 10 days in advance of disclosing periodic reports. If a listed firm fails to disclose preliminary performance reports and postpone its disclosure of periodic reports for any special reason, the period shall be calculated from 10 days in advance of the original date for disclosing the periodic report;
  • the period from the date of occurrence of any major issue that may have adverse impact on the prices of a listed firms’ stocks to the second working day after the disclosure of information; and
  • any other periods as may be stipulated by the SSE.