China Securities Regulatory Commission, Guiding Opinion on Intensifying Reform of the System for Offering of New Shares

Promulgated: October 11 2010
Effective: November 1 2010

Main contents: When online purchases are insufficient, the shares may be reallocated offline and made available for purchase by institutional investors participating offline. If purchases are still insufficient, the underwriting syndicate may recommend other investors to participate in the offline purchase. If valid purchases by offline institutional investors within the predetermined limit for offline sale are insufficient, the shares may not be reallocated online, and the offering may be suspended. If the offline quoting outcome does not meet the expectations of the offeror and lead underwriter, or if the online purchases are insufficient or if purchases still remain insufficient after an offline reallocation following insufficient online purchases, the offering may be suspended. The specific circumstances for suspension of the offering may be agreed upon by the offeror and the underwriters and disclosed. After the suspension of an offering, it may be reinitiated during the term of validity of the approval document following record filing with the CSRC.