On October 17, 2022, the China Securities Regulatory Commission ("CSRC") issued the Rules for Share Repurchases by Listed Companies (Draft for Comment) (the "Draft for Comment") and the Administrative Rules for Equity Shares of a Listed Company Held by its Directors, Supervisors and Senior Management Personnel and the Related Changes (Draft for Comment) to solicit public opinions by November 13, 2022. 

The Draft for Comment mainly proposes the following revisions: (1) optimizing the repurchase conditions of listed companies; (2) relaxing the conditions for the implementation of repurchase by newly listed companies; (3) further clarifying the limit range when repurchase and refinancing become overlapping; and (4) optimizing the provisions on the window period for repurchase prohibition. The Draft for Comment specifies that, in the repurchase circumstance "where it is necessary for maintaining the company"s value and shareholders' rights and interests", one of the triggering conditions, reading "the company's closing stock prices show a cumulative decrease of 30% on 20 consecutive trading days", will be adjusted to "the company's closing stock prices show a cumulative decrease of 25% on 20 consecutive trading days".

(Source: China Securities Regulatory Commission)