On May 15, 2015, CNEG(Deyang) Heavy Equipment Co., Ltd. (“*ST Erzhong, or “the Company”) was approved by Shanghai Stock Exchange to terminate listing voluntarily and be delisted on May 21. Jingtian & Gongcheng is the legal counsel to the buyer of the tender offer, as well as the legal counsel to the public company which is to be delisted through resolution by shareholders’ meeting.

After the voluntary termination of listing, the shares of *ST Erzhong will be listed on NEEQ (National Equities Exchange and Quotations). The delisting of *ST Erzhong this time is not only the first real case since the reform of the delisting rules of 2014, but the first company to exit trading of stock exchange voluntarily and completely in the history of China’s stock exchange. It will play an exemplary role for the future voluntary delisting and complete delisting works on the stock markets in China.

The voluntary delisting of *ST Erzhong is an unprecedented innovation on the domestic capital market, and many new legal issues arise during the execution of the project, such as applicability of relevant laws, protection of the interests of medium and small investors, repurchase price, as well as treatment of state-owned equities. Jingtian & Gongcheng is fully involved in the design, discussion and implementation of the delisting plan, and smoothly solves all related legal issues.