Recently, listed company Jiangsu General Science Technology announced that the controlling shareholder, Red Bean Group, plans to transfer 110 million shares, accounting for 6.92% of the total share capital of the listed company, to Shanghai Jiu Yi Investment Management Co., Ltd. through an agreement transfer. This major shareholder reduction is only a microcosm of the A-share listed companies' reduction through agreement transfer since this year. According to incomplete statistics, as of now, the number of listed companies whose major shareholders have reduced holdings through this method exceeds 250, and the proportion of the amount reduced by this method is close to 80%. Agreement transfer has become the mainstream way for major shareholders of listed companies to reduce holdings this year. In addition, many VC/PE institutions holding equity in listed companies have exited some of their shares through agreement transfers. Industry insiders pointed out that as a compliant way of reducing holdings, agreement transfer can maintain market stability and meet the needs of major shareholders to reduce their shareholdings in the current sluggish market environment. Private equity funds frequently entering the market also to some extent demonstrate their confidence in the market, but potential risks need to be noted. (Securities Times)