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Q&A Regarding Foreign Investors Make Strategic Investments in Listed Companies (1)

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Q: What is strategic investment?
A: Strategic investment refers to the behaviour of obtaining and holding A-share shares of listed companies in the medium and long term through the directional issuance of new shares by listed companies, transfer by agreement, tender offer and other means stipulated by national laws and regulations.

Q: What does foreign investor refer to?
A: Foreign investors refer to foreign individuals, enterprises, or other organizations.

Q: What does a listed company refer to?
A: Listed companies refer to A-share listed companies.

Q: What principles do foreign investors need to follow when making strategic investments in listed companies?
A: Foreign investors should follow the following principles when making strategic investments in listed companies:
  1. Comply with national laws and regulations, and shall not harm national security and public interests;
  2. Adhere to the principles of openness, fairness, and impartiality, safeguard the legitimate rights and interests of listed companies and their shareholders, accept supervision from the government and the public, apply Chinese laws, and submit to Chinese judicial and arbitration jurisdiction;
  3. Carry out medium and long-term investments, maintain the normal order of the securities market, and prohibit speculation;
  4. Shall not impede fair competition, shall not exclude, restrict competition.

Q: What restrictions do foreign investors have on strategic investment in listed companies?
A: Foreign investors are not allowed to make strategic investments in listed companies involved in areas prohibited by the negative list for foreign investment access; When foreign investors make strategic investments in listed companies involved in the investment fields restricted by the negative list regulations for foreign investment access, they shall comply with the restrictive special management measures such as equity requirements and senior management personnel requirements stipulated in the negative list regulations.

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