The National Equities Exchange and Quotations Co., Ltd. ("NEEQ") has recently issued the Replies to Regulatory Issues on Major Assets Restructuring of NEEQ-listed Companies Delisted from the Shanghai Stock Exchange and the Shenzhen Stock Exchange (the "Replies").
According to the Replies, a company with its stock delisted from the Shanghai Stock Exchange ("SSE") or the Shenzhen Stock Exchange ("SZSE") shall, if it intends to carry out a major assets restructuring, perform its information disclosure obligation as required, do business legally and in compliance with applicable regulations, free itself from any significant uncertainty as to its sustainable business operations, have completed the share-trading reform or ensure it could be accomplished through this proposed restructuring, and satisfy requirements on clear equity ownership and thorough systems for corporate governance, within the recent two years in accordance with articles set out in the Administrative Measures for the Supervision over Unlisted Public Companies and those in the Interim Measures for Information Disclosure by STAQ and NET Companies and Delisted Companies on the National Equities Exchange and Quotations. Further, the Replies state if a major assets restructuring happens to a delisted company when its bankruptcy reorganization is underway, but the delisted company does not meet the above-said requirements before such reorganization, this company is required to wait for two complete fiscal years once the said restructuring comes to an end, during which it shall do business in compliance with the law, and is not allowed to have any other private placement of shares or restructuring programs before the end of such waiting period.