Industry insiders: 'Divorce-style reduction of holdings' is not feasible. After divorce, both parties still need to jointly abide by the restrictions on reduction of holdings and other regulations.

On January 23, Jin10 Data reported that in recent years, the A-share market’s “divorce-style reduction of holdings” has continued to receive follow-up from the market. Industry insiders analyzed that “high-price divorce” and “roundabout reduction of holdings” cannot be simply equated. The regulatory authorities have taken effective measures to block the “roundabout reduction of holdings” and other behaviors, and the “divorce-style reduction of holdings” is no longer feasible. Regulatory officials stated that the reduction of shareholding is a basic right enjoyed by shareholders, but major shareholders and directors and supervisors of listed companies, as “key minorities,” have special obligations and responsibilities in the operation and governance of the company. They should effectively safeguard the interests of listed companies and small and medium shareholders and consciously regulate the reduction of holdings, and shall not evade the restrictions on reductions through any means such as divorce, dissolution and liquidation, or separation.