Opinions on Further Promoting the Reform of the System for Offering of New Shares

(Issued by the China Securities Regulatory Commission on November 30 2013.)

CSRC Announcement [2013] No.42

To thoroughly implement the requirements concerning “promoting reform of the share offer registration system” in the decision of the Third Plenum of the 18th Central Committee of the Communist Party of China, it is necessary to further promote reform of the system for offering of new shares, clarify and straighten out the relationship between the government and the market in the course of the offering of new shares, accelerate the transformation of the method of regulation, enhance the quality of information disclosures, strengthen market discipline and promote the acting in good faith by all market participants so as to establish a solid foundation for the implementation of the share offer registration system. The overall principles of the reforms are: adhering to a market driven and law based orientation, comprehensively implementing policies, addressing both symptoms and root causes, further rationalising the operating mechanisms at the offer, pricing and placement stages, leveraging the decisive role of the market, strengthening market oversight, safeguarding market fairness and duly protecting the lawful rights and interests of investors, particularly small and medium investors.