Applaud Sany Group's commitment to reduce its holdings

Nanfang Daily, June 19, 2008Big and small non-issues are one of the major problems plaguing China's stock market right now. In order to alleviate the pressure of large and small non-shareholding reductions, on April 20 this year, the China Securities Regulatory Commission urgently issued the "Guiding Opinions on the Lifting of the Transfer of Restricted Stock Shares of Listed Companies" (hereinafter referred to as the "Guiding Opinions"). However, judging from the implementation of the "Guiding Opinions" in the past two months, the "Guiding Opinions" have not played much role in alleviating the pressure of large and small non-shareholding reductions in addition to making several large and small non-shareholders of several companies such as Hongda Co., Ltd. suffer injustice. Although the Guiding Opinions stipulate that if a shareholder holding the unrestricted stock shares expects to publicly sell more than 1% of the total number of shares of the company in the next month, he or she shall transfer the shares held through the block trading system of the stock exchange. However, in the face of the "reduction of holdings" and "bridge reductions", the provisions of the "Guiding Opinions" are in vain, and in the past two months, the efforts of the China Securities Regulatory Commission and the Shanghai and Shenzhen Stock Exchanges to solve the problems of large and small non-profits have basically been in vain.

Just when the management was helpless in the face of big and small problems, on June 18, Sany Group, the controlling shareholder of Sany Heavy Industry, made a commitment to reduce its holdings, which undoubtedly brought good news to the entire market. Sany Heavy Industry is the 2005 share reform * 5656 companies successfully implemented the share reform, according to the share reform of the "lock one climb two" arrangement, June 17 this year is the company's shares officially into full circulation of the day, which also means that the Chinese stock market full circulation era officially arrived. However, on June 17, Sany Heavy Industry's shares were suspended all day due to the failure to announce important matters. In the evening of the same day, Sany Heavy Industry issued an announcement on the commitment of the controlling shareholder Sany Group to reduce its shareholdings, and Sany Group made a special commitment to reduce the shares of Sany Heavy Industry held by it: 1. Sany Group promised to lift the ban on the 518,126,188 shares of Sany Heavy Industry listed and circulated on June 17, 2008, and voluntarily continued to lock them up for two years from June 19, 2008. 2. Within two years from June 17, 2008, if the secondary market price of Sany Heavy Industry shares is lower than twice the closing price on June 16, 2008 (i.e., 55.76 yuan per share), Sany Group promises not to reduce its holdings of Sany Heavy Industry shares that have been lifted in the previous two years through the secondary market.

Voluntarily locking up the unrestricted listed shares for two years is undoubtedly a great move for the Chinese stock market, which is currently in trouble. It gives investors hope that China's stock market will solve the problem of big and small. Originally, according to the arrangement of "locking one and climbing two", in the face of the pressure of lifting the ban on "climbing two", the stock market was already overwhelmed. If after the expiration of the "lock one climb two" period, a fully circulating listed company like Sany Heavy Industry appears, which is undoubtedly worse for the current stock market. The pressure on the stock market will be greater. Sany Group voluntarily increased the lock-up period of two years when all the shares of Sany Heavy Industry were tradable, which undoubtedly greatly reduced the pressure on the stock to reduce its holdings. If the major shareholders of other listed companies can also learn from the controlling shareholders of Sany Heavy Industry, then it will be much easier to solve the big and small problems. (Written by Pi Haizhou)