Legislation roundup: IPO reform, preference shares and financial support in the Free Trade Zone
December 06, 2013 | BY
clpstaff &clp articlesThe CSRC has released Opinions reforming the IPO system. For the first time in China, preference shares are to be launched according to Guiding Opinions from the State Council. The PBOC has released Opinions over financial support in the Free Trade Zone
Capital markets
China Securities Regulatory Commission, Opinions on Further Promoting the Reform of the System for Offering of New Shares
The CSRC will review the contents of offer application documents and information disclosures for their legal compliance, but will not make any determination as to the profitability and investment value of issuers. If, during the six months after the listing of a company, the closing price for its shares is below the offer price for 20 consecutive trading days, or if the closing price is lower than the offer price at the end of the six month period after the listing, the lockup period for the company shares held by the issuer's controlling shareholder and by the issuer's directors and senior management personnel will automatically be extended for at least six months.
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