Legal basis: Interim Measures for the Administration of Free Transfer of State-owned Property Rights of Enterprises
Article 1 In order to regulate the free transfer of state-owned property rights of enterprises, ensure the orderly flow of state-owned property rights of enterprises and prevent the loss of state-owned assets, these Measures are formulated in accordance with the Provisional Regulations on the Supervision and Administration of State-owned Assets of Enterprises (the State Council Decree No.378) and other relevant provisions.
Article 2 The term "free transfer of state-owned property rights of enterprises" as mentioned in these Measures refers to the free transfer of state-owned property rights of enterprises between government agencies, institutions, wholly state-owned enterprises and wholly state-owned companies. A wholly state-owned company, as a party to be included or set aside, shall comply with the relevant provisions of the Company Law of People's Republic of China (PRC).
Article 3 These Measures shall apply to the free transfer of state-owned property rights of enterprises at all levels (hereinafter referred to as funded enterprises) and their subsidiaries authorized by people's governments at all levels to perform the responsibilities of investors. The free transfer of state-owned shares of a joint stock limited company shall be implemented in accordance with the relevant provisions of the state.