Market News International:

The CSRC stepped up regulation on shareholding reduction last August, but it has not completely prevented major shareholders from implicitly liquidating shares at high prices after listing. I would like to ask what more stringent and specific measures will be introduced in the future to improve regulation on reductions by major shareholders. Thank you.

Guo Ruiming:

I will take this question. Next, we will comprehensively improve the regulations on shareholding reductions and prevent shareholders from implicitly reducing their shareholdings in accordance with the principle of substance over form. The main measures include: First, we need to clarify the reduction rules in cases such as divorce and dissolution of controlling shareholders. Second, we must clarify the reduction rules for scenarios like stock pledge liquidation and gifts. Third, we need to prohibit major shareholders, directors, and senior executives from engaging in derivative transactions involving the company's stocks, forbid restricted stocks from being used in refinancing and lending, and prevent shareholders with restricted stocks from selling securities. For illegal reductions of holdings, we will order the repurchase of stocks, pay the price differences, and impose severe penalties on those who refuse to correct their actions. Thank you.