Shanghai Stock Exchange releases new guideline
By SHI JING in Shanghai | chinadaily.com.cn | Updated: 2019-04-16 20:26
As approved by the China Securities Regulatory Commission, the Shanghai Stock Exchange released on Tuesday a guideline for issuing and underwriting businesses for the Science and Technology Innovation Board.
Issuers for the new tech board are being supported to introduce strategic investors under the new guideline. The number of strategic investors varies, based on the number of shares issued regarding each company's initial public offering.
The guideline also specifies the investment rules for sponsors' subsidiaries. The sponsor's legally established alternative investment companies are allowed to make the investment according to the new guideline. Securities firms that hold controlling stakes in the sponsors are allowed to have their alternative investment subsidiaries invest in the companies for the new tech board.
An over-allotment option for major underwriters has been specified in the new guideline, under which the underwriters are required with detailed rules regarding information disclosure, keeping trading records and making related arrangements. The major underwriters are not allowed to sell the shares that have been bought to stabilize stock prices under the over-allotment option mechanism.
The rules for commission granted to brokerages, as well as the stock placement procedures have also been made clear in the new guideline.