Holders of untradable shares in listed companies are banned from seeking transferees publicly for their shares unless they secure nod from the State Council.
Otherwise, their shares are prohibited from transferring.
A spokesman for the China Securities Regulatory Commission, the industry watchdog, pointed out Thursday transfer of untradable shares should be carried out according to law.
Under the Company Law and the Securities Law, any public announcement of an intent to sell shares to non-specific individuals or institutions will constitute a public share offer. Such actions should get the approval of the securities regulatory department in advance. Any breaches of the regulation will bear the legal responsibility.
Nonetheless, the spokesman revealed the authorities are busy working on the rules for transfer of untradable shares.
(People's Daily 07/20/2001)
