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2008-09-22 | All chapters

China reduces lockup period from 3 to 1 year

The European Chamber Private Equity and Strategic M&A Working Group welcomes the announcement made by the Shanghai Stock Exchange and Shenzen Stock Exchange to reduce the lockup period from 3 to 1 year effective as of the 1st of October 2008.

As stated in its first Position Paper the Private Equity Working Group actively supports China’s efforts to improve access to capital for Chinese companies. The announcement to reduce lockup period answers one of the recommendations stated in the position paper and will positively affect the liquidity of the markets and attract more private equity funds to invest in Chinese companies.

The European Chamber Private Equity and Strategic M&A Working Group represents European private equity funds, corporate M&A, banks and advisors. The objective of the Working Group is to serve as the platform of reference for all European-related PE funds, strategic investors and M&A players, and interact efficiently and regularly with all government bodies and industry associations related with this subject.

 For more information on the Working Group please contact Mrs. Derval Usher in Shanghai dusher@euccc.com.cn or Gregory Van Bellinghen in Beijing gbellinghen@euccc.com.cn