Takeovers of Listed Companies under the SSE Rules

The Measures for the Administration of the Takeover of Listed Companies (the Takeover Measures) and the Measures for the Administration for Disclosure of Ownership Change in Listed Companies (the Disclosure Measures), promulgated by the China Securities Regulatory Commission (CSRC) in 2002, include important disclosure requirements that acquirers should be particularly aware of, during the takeover of a listed company. In addition, the Shanghai Stock Exchange, Listing Rules (Listing Rules) impose certain disclosure obligations upon the relevant parties, particularly the target companies that are involved in the takeovers of Shanghai Stock Exchange (SSE) listed companies. Under the Listing Rules, target companies and acquirers should also be aware of the trading halt and delisting requirements in relation to takeovers.