April 28, 2014

On March 19, the Shanghai Stock Exchange ("SSE") issued the amended Implementing Rules for the Securities Trading of Qualified Foreign Institutional Investors ("QFIIs") and RMB Qualified Foreign Institutional Investors ("RQFIIs") (the "Implementing Rules").

The amended Implementing Rules expand their scope of application to bring the QFIIs and RQFIIs under their supervision. According to the Implementing Rules, the SSE has raised the pre-warning value for the limit on the percentage of shareholding by all foreign investors from 16% to 26% while the limit on the percentage of shareholding by a single foreign investor remains unchanged. In addition, the sum of the percentages of shareholding by all foreign investors in a single listed company shall not exceed 30% of the total shares of such listed company.

(Source: LexisNexis)