May 22, 2012
Translated by Tang Xiangyang

The stock market regulator has made changes its law on initial public offerings, giving retail investors a bigger influence over the price and setting the principle that at least 50% of newly-issued shares should be sold to institutional investors.

 
The China Securities Regulatory Commission’s (CSRC) revisions to its Rules of Securities Issuance and Underwriting also abolishes the mandatory restricted period – the period when investors who bought shares at the IPO weren’t allowed to sell them - but says that issuers and underwriters may themselves set minimum holding periods.

 
The CRSC also said that a mechanism will be set up so that institutional investors can sell their shares to retail investors. The commission is encouraging leaders and underwriters to experiment with new ways of pricing shares, but says it will encourage stricter supervision of IPOs. 

 
Links and Sources
CSRC 中国证监会修订并公布《证券发行与承销管理办法》