Geo-Jade Petroleum(SH:600759) Zheng Quan Shi Bao·2025-11-10 18:19Core Viewpoint - The recent announcement by Zhongjie Oil and Gas regarding shareholder Xiamen Jiucheng's illegal share reduction highlights the regulatory measures taken by the Hainan Securities Regulatory Bureau, indicating that illegal reductions are now "unprofitable" and may lead to greater losses for shareholders [1][2]. Regulatory Framework - Xiamen Jiucheng's share reduction of 5.976 million shares occurred less than 15 trading days after the announcement of its reduction plan, violating the Interim Measures for the Administration of Share Reduction by Shareholders of Listed Companies [1][2]. - The regulations require major shareholders to report and disclose their reduction plans 15 trading days prior to selling shares, ensuring market fairness and transparency [1][2]. Consequences of Violations - Regulatory measures allow for the "order to repurchase illegal reduced shares and pay the price difference" which could result in financial losses for the shareholder if the repurchase price is lower than the selling price [2][3]. - The potential costs associated with repurchasing shares, including transaction costs, make illegal reductions ultimately disadvantageous for shareholders [2][3]. Recommendations for Improvement - Major shareholders should adhere to legal and regulatory responsibilities, recognizing that illegal reductions are harmful and should internalize compliance requirements [3][4]. - Listed companies must enhance their management of shareholder share changes, ensuring timely and accurate reporting of shareholding changes [3][4]. - Establishing a "cooling-off period" for share reduction plans and implementing share "pre-freezing" mechanisms could prevent premature reductions [3][4]. - Regulatory authorities should maintain a "zero tolerance" approach towards illegal reductions, refining enforcement standards to ensure consistency and predictability in penalties [4].