CSRC's New IPO Rules

- The company prospectus will be disclosed upon acceptance, and the issuer and intermediary institutions must be responsible for the "authenticity, accuracy and completeness" of the prospectus hereafter.

- The IPO will be approved after a review of the CSRC's Public Offering Review Committee. The issuer is free to choose the timing of IPO within 12 months of the approval.

- The controlling shareholder and shareholding senior management of the issuer must agree that if they sell their shares within two years after the lock-up period expires, the selling price shall not be lower than the offering price.

- The issuer and underwriters can independently fix the offering price, and if the price-to-earnings ratio is higher than the average level on the secondary market, they must issue a special announcement on investment risks.

- False records, misleading statement or omission of major items will not be accepted for IPO applications within three years.

- The CSRC plans to establish a system to suspend trade on the first day of trading to curb speculation on new stocks.