27. Split-share structure reform pilot started in 2005
After the approval of the State Council, the China Securities Regulatory Commission released the Notice of Split-Share Structural Reform of Listed Companies on April 29, 2005 and announced the kick-off of split share structure reform.
One year later, Chinese capital market has made significant progress in split share structure reform, improvement of the quality of listed companies, comprehensive management of securities firms, and development and growth of institutional investors, as well as improvement of legal systems.
After the introduction of split share structure reform, distribution management system can constrain the prices of stock market and investors more prominently.