The Shanghai Stock Exchange has released newly revised rules for stock listings, strengthening the protection of shareholders' rights, especially those of small and medium shareholders.

The Shanghai Stock Exchange issued the "Shanghai Stock Exchange Stock Listing Rules", which shall be implemented from the date of issuance. The main revisions include: first, clarifying the responsibilities of the audit committee. Second, strengthening the responsibilities of directors and senior management, as well as regulating the behavior of controlling shareholders and ultimate controllers. Third, enhancing the protection of shareholders' rights, especially those of small and medium-sized shareholders. Fourth, improving the disclosure requirements related to bankruptcy reorganization. It is specified that when controlling shareholders or ultimate controllers act as de facto directors, they must comply with the obligations of loyalty and diligence of directors. To protect the rights of small and medium-sized shareholders to propose temporary motions, the threshold for temporary motion shareholders' ownership has been reduced from 3% to 1%, and the company is not allowed to increase the ownership threshold for temporary motion shareholders. Furthermore, the requirements for the review and disclosure of related party transactions have been clarified, and related party transactions that meet the disclosure standards require the consent of a majority of the company's independent directors before being submitted to the board of directors for approval.