Legal analysis: In order to further promote listed companies to establish and improve the incentive and restraint mechanism, the Measures for the Administration of Equity Incentive of Listed Companies are formulated in accordance with the Company Law of People's Republic of China (PRC), the Securities Law of People's Republic of China (PRC) and other relevant laws and administrative regulations. China Securities Regulatory Commission issued it on July 13, 2065, and it will take effect on August 13, 2065. A listed company that intends to implement equity incentive can use the following methods as the source of the underlying shares: (1) issuing shares to the incentive object; (2) Repurchase the shares of the company; (3) Other ways permitted by laws and administrative regulations.
Legal basis: According to Article 12 of the Measures for the Administration of Equity Incentives of Listed Companies, listed companies that intend to implement equity incentives can use the following methods as the source of the underlying shares: (1) issuing shares to the incentive targets; (2) Repurchase the shares of the company; (3) Other ways permitted by laws and administrative regulations.