Share Issuance Examination Committee of China Securities Regulatory Commission, Examination Work Associated with Initial Public Offering of Shares Guidance Opinion

Promulgated: May 11 2001
Effective: as of date of promulgation

Main contents: The Opinion requires members of the Share Issuance Examination Committee to give special attention to and make independent judgment on certain questions when examining an application for an initial public offering of shares. The Opinion lists 15 such questions and specifies the meaning of each of these questions. These questions include whether the company has seriously violated the law during the last three years (Section Two(1)), whether it has been continuously profitable during the most recent three years (Section Two(3)), whether its net assets account for no less than 30% of its total assets (Section Two(6)), whether it is separate and independent from its shareholders in terms of its business undertakings, assets, staff and financial affairs (Section Two(10)), whether it has had major or frequent connected transactions obviously not impartial (Section Two(11)), whether it is involved in areas of business which are restricted or prohibited by State industrial policy (Section Two(13)), and whether its financial documents for the last three years are true, complete and accurate (Section Two(14)).
Related legislation: PRC, Securities Law (Amended), Oct 27 2005, CLP 2006 No.1 p31; PRC, Company Law (Amended), Oct 27 2005, CLP 2005 No.10 p21; Administration of Offerings of New Shares by Listed Companies Procedures, Mar 28 2001, CLP 2001 No.4 p24 and China Securities Regulatory Commission, Share Issuance Examination Committee Regulations, Sep 16 1999, CLP 1999 No.9 p7