New Regulations Give Rise To Additional Commitment &Nbsp; Gem New Army "Overweight" Restricted Terms

In the context of encouraging the extension of the sale period by regulators, GEM companies " Voluntary commitment "Increasingly rich. Reporters comb since November 51 pre disclosure materials found that, in addition to statutory sales restrictions, 6 GEM companies have been November 4th " New restrictions on sale The main provisions are included in the first commitment; many companies have also locked the conditions of Dong Jiangao (directors, supervisors and senior managers) in connection with the corresponding directors and supervisors; another 2 companies have made a pledge to pledge the shares held during the period of sale, which has blocked the passage of "disguised cash".

On the eve of lifting the ban on the first batch of GEM stocks, the resignation of some shareholding executives was heated. In November 4th, the Shenzhen Stock Exchange issued the notice on further regulating the behavior of directors, supervisors and senior managers of the listed companies on GEM to buy and sell shares of the company. The main new clause is that the directors of the GEM board declare their resignations within 6 months from the date of listing, and they shall not reduce their shares within 18 months from the date of filing, and declare their turnover within seventh months to 12 months, and shall not reduce their shares within 12 months from the date of filing. In addition, the Shenzhen Stock Exchange encourages the high shareholders of Tung Chung to extend the commitment period and set the minimum price reduction.

Previously, according to the relevant rules, there were 3 main provisions for the lock up of the gem stock market: first, the original shareholders should not transfer shares within 1 years from the date of listing; two, the controlling shareholders and the actual controllers should undertake to not transfer shares within 36 months of the listing; three the shareholders who have contributed shares within 6 months before the submission of the IPO application, except for the 1 year lock up period, still need to promise that the new shares transferred within 24 months shall not exceed 50% of the new shares they hold.

A significant change is that since the release of the new rules on sale in November 4th, the new company has "targeted" to extend the lock up period. Among them, 6 companies gathered in the spotlight technology and other companies this month have incorporated the main provisions of the new regulations into the first commitment, and the shareholders who make the commitment are not limited to Dong Jiangao himself, but also stipulate that the locking period of the shares held by their associated parties is consistent with the corresponding locking period of the directors. What triggered concern before was that Sun Xiaolu, the spouse of Tan Zhi, a supervisor of Huayi Brothers, sold out all 7 million 200 thousand shares in 19 days after the lifting of his share holdings and cash in about 210 million yuan. According to the above additional commitments, Sun Xiaolu can hold up to 25% a year.

In addition, Dong Jiangao and its affiliated shareholders of many companies such as Jinyun laser and so on, in addition to their statutory commitments to not transfer shares within 6 months after their departure, they also voluntarily promise to sell shares of the stock exchange through the stock exchange within 12 months after the 6 months after the date of their departure, no more than 50% of the total shareholding. As a matter of fact, the provision is a "new rule" imposed by the Shenzhen Stock Exchange in April 2008 against the high regulation of small and medium-sized board directors. In addition, less restricted sales commitments such as: Hong te precision shareholders, Y. Fung economic and trade commitments, except the shares held for 1 years, the shares transferred each year within 3 years after listing are not more than 15% of the total shareholding.

Another focus of the gem is that some shareholders, especially venture capital, pledge and pledge their shares in the restricted sale period. Such as silver river shares shareholders Lanshan investment, Jinya technology shareholders Xin Ao venture capital have implemented the pledge of shares to implement trust financing, until the lifting of the restricted shares will immediately "thaw" cash.

After the new regulations came out in November 4th, 2 Shareholders of the company voluntarily promised to give up the pledge right during the sale period. For example, all 46 shareholders including Tongyu heavy industry, including Chairman Si Xingkui and his co operative Zhu Jinzhi, undertook not to pledge the shares held during the period of sale, and the unanimous undertaking of the largest shareholder of China and the shareholders of several shareholders in the sale period did not set mortgage, hypothecation or any other restrictions or other rights in the shares.

Market participants analyzed that although the number of shares gradually lifted accounted for a small proportion of the total share of the gem, and cash for the purpose of resignation executives accounted for a very small proportion, but the psychological impact of investors. Today, the commitment of shareholders of GEM companies to actively extend the selling period and control the reduction ratio will play a positive role in the smooth operation of the growth enterprise market, and will also enhance investors' sense of recognition of the value of these companies.