The China Securities Regulatory Commission ("CSRC") recently issued the revised Guidelines on the Articles of Association of Listed Companies (Revised in 2014) (the "Guidelines") and the Rules for General Meetings of Shareholders of Listed Companies (Revised in 2014) (the "Rules").

The Revised Guidelines clarify the definition of preferred stock in the Notes, and impose requirements for a listed company to create conditions for the issuance of preferred stock and set different priorities in clauses rather than those concerning its right for the distribution of profits and remaining assets in its articles of association. In addition, according to the revised Guidelines and Rules, shareholders of preferred stock of a listed company generally do not attend the general meetings of shareholders, and the shares they hold bear no voting right. However, shareholders of the preferred stock of a listed company shall enjoy the voting right in the deliberation of the following important matters: revision of the content of the articles of association concerning preferred stock; reduction of the company's registered capital by more than 10% once or accumulatively; merger, split-up, dissolution or change of the form of the company; issuance of preferred stock; and other matters as prescribed in the articles of association of the company.