The China Securities Regulatory Commission has published for public consultation draft amendments to the Measures for the Administration of Securities Issuance and Underwriting, aimed at implementing reforms to the Shanghai Stock Exchange’s STAR Market issuance and underwriting framework. The proposal would support a pilot under which offline institutional investors in IPOs of unprofitable STAR Market issuers that accept higher lock up ratios and longer lock up periods would receive higher placement allocations. The draft would authorise securities exchanges to set detailed requirements for category based (differentiated) allocations. It also includes consequential revisions to align relevant provisions with updates to the Company Law and the Interim Measures on Share Reductions by Shareholders of Listed Companies. Following the consultation, the CSRC plans to refine and issue the amendments for implementation, while guiding the Shanghai Stock Exchange to update related business rules and supervisory arrangements in parallel.
China Securities Regulatory Commission 2025-01-03
China Securities Regulatory Commission consults on amending issuance and underwriting rules to pilot higher allocations for longer lock ups in unprofitable STAR Market IPOs
The China Securities Regulatory Commission has released draft amendments to reform the STAR Market's issuance and underwriting framework. The proposal includes a pilot for higher placement allocations to offline institutional investors in IPOs of unprofitable issuers with higher lock-up ratios and periods. It authorizes exchanges to set detailed requirements for allocations and aligns provisions with updates to the Company Law and Interim Measures on Share Reductions by Shareholders of Listed Companies.