State-owned Assets Supervision and Administration Commission of the State Council, Circular on Matters Relevant to the Exchange of State-owned Assets and Equity of Enterprises Directly under the Central Government

Issued: Semptember 7 2011

Applicability: The term “exchange of state-owned assets and equity” means that an enterprise directly under the central government, when carrying out asset reorgnisation, exchanges the enterprise assets and equity it holds with those held by the enterprises in which it fully owns or has an absolute controlling stake (hereinafter, collectively referred to as “State-owned Entities”), or a State-owned Entity exchanges the enterprise assets and equity it holds with the assets and equity held by an enterprise in which the enterprise directly under the central government has de facto control, and the amount of cash to make up the price difference accounts for less than 25% of the total amount of the asset exchange (Article 1).