Suppose NCF, a mainland Chinese-incorporated joint stock company, has the following equity ownership structure:

400 million tradable and listed B- shares

800 million tradable and listed A- shares

1,800 million non-tradable state-held shares, all owned by investor ST

Total number of shares outstanding in NCF = 3,000 million shares

In accordance with Chinas Split Share Reform (SSR) Program, ST wishes to re- designate its non-tradable (unlisted, domestic) stock into tradable A- form by offering existing tradable A- shareholders 2.9 additional A- shares for every 10 A- shares already held. Note that no compensation is offered to NCFs B- shareholders. Moreover, the shares to be granted existing tradable A- share investors are existing shares held by ST. How many shares will each of the following groups (or parties) hold in NCF immediately after the SSR proposal is endorsed and becomes effective?

(a) Investor ST

(b) Tradable B-share investors

(c) Tradable A-share investors

* Note: (i) The transferred compensation shares will be converted from domestic, unlisted form into tradable A- share form and will be available for secondary market trading on proposal endorsement; and (ii) on transfer of the compensation shares, ST voluntarily commits and declares to retain its residual holding absolutely for a period of five years (i.e., the locked-in shares are not eligible for listing until five years later).

(d) Does the Split Share Reform scheme apply to Red-Chip stock issuers?