What does "placard" mean?

"placard" is a term about the acquisition of listed companies. According to the Securities Law of People's Republic of China (PRC), when an investor holds 5% of the issued shares of a listed company by agreement or other arrangements, he shall make a written report to the the State Council securities regulatory agency and the stock exchange, notify the listed company and make an announcement. This process is called "placarding".

The placard is a norm for the stock market. When an institution or individual buys a stock through the secondary market, which accounts for 5% of the stock, it must put up a placard, publicly identify itself and let everyone know about it. It is a good thing that the stock is placarded, indicating that someone has taken a fancy to this stock and is ready to hold a large number of shares!

Extended data:

The Measures for the Administration of the Acquisition of Listed Companies stipulates that investors and their concerted parties shall trade through the stock exchange after the shares held by them reach 5% of the issued shares of a listed company.

For every 5% increase or decrease in the proportion of shares in the issued shares of the listed company, a report and announcement shall be made in accordance with the provisions of the preceding paragraph. During the reporting period and within 2 days after the report or announcement, stocks of listed companies shall not be bought or sold.

Reaching 5% is the placard line, and it will be announced once every 5% increase in the future. Stop buying during the announcement period. According to the provisions of the Securities Law, stocks that reach the placard line cannot be sold within 6 months after purchase. Otherwise, the proceeds will be owned by the listed company.

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