How to create charge over listed shares in China

In the December 2008/January 2009 issue of China Law & Practice, the authors introduced the Measures on Registration of Equity Pledge with Administrative Authorities for Industry and Commerce (Measures), which came into effect on October 1 2008. However, Article 2 provides that the Measures do not apply to charge over the shares of a company limited by shares, which have already been registered with China Securities Depositary and Clearing Corporation Limited (China Clearing). To supplement the previous commentary, this article examines relevant PRC laws, rules and practices as to the creation of charge over listed shares in this issue.