A Rule Pushed by the Market: China's New Measures for Offering and Underwriting Securities

November 30, 2006 | BY

clpstaff &clp articles

Upon reopening its market to IPOs, China's Securities Regulatory Commission introduced new Measures which change the way underwriters and institutions conduct IPO price inquiries. What do these Measures entail and how will they affect China's market in the future?

By Yang TieCheng and Zhang Nan (Beijing); Alan Xu (Hong Kong), Clifford Chance

When China reopened its market to initial public offerings (IPOs) in May 2006, after a year-long suspension, the China Securities Regulatory Commission (CSRC) issued several regulations to cover various issues affecting IPOs. One of these was the Measures for the Administration of the Offering and Underwriting of Securities, which became effective in September 2006.

The Measures set new standards for IPO price inquiries and securities issuance. They consolidate the regulatory framework on new share issuance and set a standard for intermediaries, such as underwriters and institutions participating in IPO price inquiries.

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