Regulatory Alerts2010-05-03
Added · Updated
Regulations on the Management of Securities Issuance and Trading by Listed Companies
The China Securities Regulatory Commission (CSRC) establishes rules for listed companies issuing new shares or convertible corporate bonds, requiring sustained profitability and no major illegal acts in the past three years. Issuances must be approved by the CSRC and shareholders' meeting, with prices not lower than the average trading price over the preceding 20 trading days. The regulations limit specific issuance objects to a maximum of 10, including strategic investors and senior management, who face lock-up periods of 12 months or 6 months respectively. The CSRC exercises unified supervision while stock exchanges handle on-site administration, and these provisions take effect upon promulgation.
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